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Exelon has a 18 percent return on equity and a 40 percent retention ratio. What is the sustainable growth rate (under constant debt/equity)? ______________% Hint:
Exelon has a 18 percent return on equity and a 40 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)
Enter as percent accurate to two decimals, e.g. for 10.268% enter as 10.27. You will be marked wrong if you enter as fraction 0.1027.
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