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    Exam 18: Financial Modeling and Pro Forma Analysis
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    A Firm Has $50 Million in Equity and $20 Million
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A Firm Has $50 Million in Equity and $20 Million

Question 76

Question 76

Multiple Choice

A firm has $50 million in equity and $20 million of debt, it pays dividends of 30% of net income, and has a net income of $10 million. What is the firm's sustainable growth rate?


A) 12%
B) 13%
C) 14%
D) 15%

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