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The Johnson Company has a return on equity (ROE) of 12.1% and a payout ratio of 30%. i. What is the companys sustainable growth rate?

The Johnson Company has a return on equity (ROE) of 12.1% and a payout ratio of 30%.

i. What is the companys sustainable growth rate?

ii. Can the companys actual growth rate be different from its sustainable growth rate? Why or why not?

iii. How can the company increase its sustainable growth rate?

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