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A Firm Has a Return on Equity of 17

Question 76

Multiple Choice

A firm has a return on equity of 17.8 percent, a return on assets of 11.3 percent, and a 65 percent dividend payout ratio.What is the sustainable growth rate?


A) 5.72 percent
B) 6.84 percent
C) 7.12 percent
D) 11.38 percent
E) 6.64 percent

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