ROE =16%
ROA =11%
Dividend Pay out Ratio =40%
Retention ratio =1-40% =60%
Sustainable Growth Rate = ROE*b/(1-ROE*b) = 16%*60%/(1-60%*16%) =
10.62%
Option c is correct option
A firm has a return on equity of 16 percent, a return on assets of 11...
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