Question
If the return on equity for a firm is 15 percent and the retention ratio is 40 percent, the sustainable growth rate of earnings and
If the return on equity for a firm is 15 percent and the retention ratio is 40 percent, the sustainable growth rate of earnings and dividends is which of the following?
Answer is 6 %. But how?
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Financial Markets And Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakin
7th Global Edition
0273754440, 9780273754442
