Question
Exelon has a 16 percent return on equity and a 43 percent retention ratio. What is the sustainable growth rate (under constant debt/equity)? Hint: Apply
Exelon has a 16 percent return on equity and a 43 percent retention ratio. What is the sustainable growth rate (under constant debt/equity)?
Hint: Apply the formula g = ROE x b / (1 - ROE x b)
7.39 Percent
6.41 Percent
8.49 Percent
8.49 Percent
9.12 Percent
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The Oxford Handbook Of Private Equity
Authors: Douglas Cumming
1st Edition
0195391586, 978-0195391589
