Calculate the sustainable growth rate if ROE is 42 20 and the retention ratio is 75 37 A 12 42 B 22 75 C 28 79 D 31 81 E 46 89 For this question, I got 31 81 as the answer by multiplying the ROE by the retention ratio Is this the right way to solve it

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Aug 27, 2024

Calculate the sustainable growth rate if ROE is 42.20% and the retention ratio is 75.37% . A. 12.42% B. 22.75% C. 28.79% D. 31.81% E.

Calculate the sustainable growth rate if ROE is 42.20% and the retention ratio is 75.37%.

	A.	12.42%
	B.	22.75%
	C.	28.79%
	D.	31.81%
	E.	46.89%

For this question, I got 31.81% as the answer by multiplying the ROE by the retention ratio. Is this the right way to solve it?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Derivatives And Internal Models

Authors: Hans Peter Deutsch, Mark W. Beinker

5th Edition

3030229017, 9783030229016

More Books

Students also viewed these Finance questions

Question

★★★★★

What can you say about the returns to scale of the Leontief production function Q = min (aK, bL), where a and b are positive constants?

Answered: 1 week ago

Question

★★★★★

In the previous problem, how high must someone score to be in the top 5%? That is, determine c such that P(X > c) = .05.

Answered: 1 week ago

Question

★★★★★

In short-selling there is no potential for a. Dividend income b. Return from capital gains c. Profit on sale d. All of the above

Answered: 1 week ago

Question

★★★★★

The comparative balance sheet of Cromme Inc. for December 31, 2016 and 2015, is as follows: Dec. 31, 2016 Dec. 31, 2015 Assets Cash Accounts receivable (net Inventories Investments Land .. $ 585,920...

Answered: 1 week ago

Question

★★★★★

The interest rate of a five-year zero-coupon bond is 3.5% and the rate of a corresponding six-year bond is 4.2%. Using the forward rate agreement formula, find the implied rate of the forward rate...

Answered: 1 week ago

Question

★★★★★

You are an auditor on the Alpha Limited (Alpha) engagement. Alphas accounts receivable master file includes the following fields: Field Number Field Name 1 Debtor account number 2 Debtor name 3...

Answered: 1 week ago

Question

★★★★★

Create a function (could be piecewise) that demonstrates the following discontinuities. (a) jump discontinuity (b) point discontinuity (c) infinite discontinuity Prove that f(x) is continuous at x =...

Answered: 1 week ago

Question

★★★★★

e) Alice wishes to sign a document and send it to Bob using RSA signatures. Suppose she generates two primes p = 7, q = 11, and a public exponent e =43, and publishes (n. e) as her public key (6...

Answered: 1 week ago

Question

★★★★★

yellow boxes NAME Suppose you administer a certain aptitude test to a random sample of 9 students in your school, and that the average A new sneaker claims that it can make male athletes jump higher....

Answered: 1 week ago

Question

★★★★★

You have a firm that starts out with $70,000 in cash in the bank. You have three investment opportunities. You can undertake any or all of these investment opportunities, but you may only invest in...

Answered: 1 week ago

Question

★★★★★

Base on the diagram 2a, what is the MySQL version? Wireshark - Follow HTTP Stream (tcp.stream eq 4).SQL_Lab.pcap ID: 1 or 1-1 union select null, version ()# First name: admin Surname: admin ID: 1' or...

Answered: 1 week ago

Question

★★★★★

How do your personality traits affect your teamwork and decision-making style and your interest and ability to participate in group decision-making?

Answered: 1 week ago

Question

★★★★★

Is following the steps in the decision-making model really all that important? Which steps of the model do you tend to follow? Which steps do you tend to not use? Will you use the model in your...

Answered: 1 week ago

Question

★★★★★

Are creativity and innovation really that important to all types of businesses?

Answered: 1 week ago

Previous Question Next Question