Question
Sustainable Growth If the return on equity for a firm is 15 percent and the retention ratio is 40 percent, the sustainable growth rate of
Sustainable Growth 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?
a. 6 percent
b. 9 percent
c. 15 percent
d. 40 percent
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Financial Management Core Concepts
Authors: Raymond M Brooks
2nd edition
132671034, 978-0132671033
