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Return on equity for a corporation is 12 percent.The company pays 40 percent of its earnings as dividend every year.What is the sustainable growth rate
Return on equity for a corporation is 12 percent.The company pays 40 percent of its earnings as dividend every
year.What is the sustainable growth rate for the earnings and dividends of this company?Assume that the
required rate of return is 10 percent.
7.2 %
4 %
6 %
4.8 %
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