Multiple Choice
Suppose a firm has a growth rate equal to 8 percent, return on assets (ROA) of 10 percent, a debt ratio of 20 percent, and a current stock price of $36. The firm's return on equity (ROE) is:
A) 14.0%.
B) 12.5%.
C) 15.0%.
D) 2.5%.
E) 13.5%.
Correct Answer:
Verified
Correct Answer:
Verified
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