What is the sustainable growth rate if the ROE is 17% and the payout ratio is 25%. а. 12.79% b. 8.00% с. 14.61% d. 8.62%

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter7: Valuation Of Stocks And Corporations
Section7.6: Valuing Nonconstant Growth Stocks
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What is the sustainable growth rate if the ROE is 17% and the payout ratio is 25%.
а. 12.79%
b. 8.00%
с. 14.61%
d. 8.62%
Transcribed Image Text:What is the sustainable growth rate if the ROE is 17% and the payout ratio is 25%. а. 12.79% b. 8.00% с. 14.61% d. 8.62%
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