Question
AB Technologies has a dividend payout ratio of 60% (i.e., dividends/earnings).Its capital structure is expected to remain relatively stable for the foreseable future.AB's most recent
AB Technologies has a dividend payout ratio of 60% (i.e., dividends/earnings).Its capital structure is expected to remain relatively stable for the foreseable future.AB's most recent net income and average equity are $20m and $250m, respectively.Its average total asset level was $350m.What is AB's Return on Equity (ROE) and sustainable growth rate, g, respectively?
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International Financial Management
Authors: Cheol Eun, Bruce G. Resnick
8th edition
125971778X, 978-1259717789
