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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?

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