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A Firm Has ROA of 12%,ROE of 20%,and a Retention

Question 30

Multiple Choice

A firm has ROA of 12%,ROE of 20%,and a retention rate of 40%.What is the firm's internal growth rate?

A) 20%
B) 12%
C) 4.8%
D) 8%
E) 7.2%

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