Question
73.) DINOMITE has a payout ratio of 33.33% and EPS of $12.00. An analysis of its financial statements shows a return on equity of 15%.
73.) DINOMITE has a payout ratio of 33.33% and EPS of $12.00. An analysis of its financial statements shows a return on equity of 15%. The sustainable growth rate is closest to:
a. 15%.
b. 12%.
c. 10%.
d. 5%.
74.) Which of the following will cause free cash flow to equity to increase?
a. The company acquires a company with cash from the balance sheet.
b. The company calls a bond after interest rates decrease.
c. The federal government decreases the tax rate on companies to attract more business to the U.S.
d. The company's accounts receivable increase from last year.
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