Question
Company Y reinvests 40% of its earnings and has an ROE of 25%. This is expected to last forever. It has 5 million shares outstanding.
Company Y reinvests 40% of its earnings and has an ROE of 25%. This is expected to last forever. It has 5 million shares outstanding. The required return is 15%. How fast will the firm grow?
a.10%
b.15%
c.30%
d.45%
e.60%
f.None of the above
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Principles Of Financial Management
Authors: Haim Levy, Marshall Sarnat
1st Edition
0137097751, 978-0137097753
