Sustainable growth rate = ROE * (1 - Dividend Payout Ratio)
Dividend Payout Ratio = Dividend/Earnings = $1.25/$2.80 = 44.64%
Sustainable growth rate = 14% * (1 - 44.64%) = 7.75%
Based on this the correct option is Option C
19. Johnson Products earned $2.80 per share last year and paid a casa dividend of $1.25...
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