Q30 Asymmetric Frames, Corp. had a return on equity of 15%. The corporation's earnings per share was $6.00, its dividend payout ratio relationshi A) B) was 40% and its profit retention rate was 60%. If these ips continue, what will be Asymmetric's internal growth rate? 6.0% 8.6% 9.0% C) D) 15.6% A small biotech company has been experiencing operating losses for the first three years of its existence, and thus has a negative balance in retained earnings. The company's stock price, however, is $1 per share. Which of the following statements is MOST correct? A) Q31 Investors are irrational to pay $1 per share when earnings per share have been negative for B) Investors believe the stock is worth $1 per share because future earnings (and cash flows) C) The company's accountants must have made a mistake because retained earnings may not D) The required return on the stock will be small because the company has very few assets. three years. are expected to be positive. be negative