ROE =16%
ROA =11%
Dividend Pay out Ratio =40%
Retention ratio =1-40% =60%
Sustainable Growth Rate = ROE*b/(1-ROE*b) = 16%*60%/(1-60%*16%) =
10.62%
Option c is correct option
A firm has a return on equity of 16 percent, a return on assets of 11...
ollapse QUESTION 18 A firm has a return on equity of 16 percent, a return on assets of 11 percent, and a 40 percent dividend payout ratio. What is the sustainable growth rat A 9.58 percent B10.62 percet C5.72 percent D.7.12 percent 64 percent QUESTION 19 Net working capital is defined as
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