Solved

Net CorpHas an ROE of 30% and Would Like to See

Question 54

Multiple Choice

Net Corp.has an ROE of 30% and would like to see earnings grow at a 18% annual rate.What percent of earnings can they afford to pay out as dividends?

A) 45%
B) 40%
C) 35%
D) 30% Growth in earnings = Plowback x ROE
) 18 = Plowback x .30
) 18/.30 = 60% = Plowback

Related Questions

Q8: _ are those expected to be turned

Q17: What is the inventory turnover ratio for

Q49: Zulu Corporation had total assets of $475

Q51: How does the DuPont Formula help identify

Q52: Name five types of distortions caused by

Q53: ABC Corp.has an ROE of 20 percent

Q56: Value Corp.recently reported earnings of $2 per

Q59: TSI Inc.has enough liquid assets to finance

Q80: What may make simple comparisons of financial

Q98: An asset turnover ratio of 1.75 can