15.Firm UUU earns $0.1 in profit on every $1 of sales, has $1.2 in assets for every $1 of sales and for has for $1 debt, issue $1.5 equity. The firm pays out 30 percent of its profits to its shareholders (answers format: keep 4 digits after the decimal point. For example: 0.1234) What are the values for ROE What is the value of b, i.e., retention ratio? 7 and ROA ?
15.Firm UUU earns $0.1 in profit on every $1 of sales, has $1.2 in assets for every $1 of sales and for has for $1 debt, issue $1.5 equity. The firm pays out 30 percent of its profits to its shareholders (answers format: keep 4 digits after the decimal point. For example: 0.1234) What are the values for ROE What is the value of b, i.e., retention ratio? 7 and ROA ?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Question 15
15.Firm UUU earns $0.1 in profit on every $1 of sales, has $1.2 in assets for every $1 of sales and
for has for $1 debt, issue $1.5 equity. The firm pays out 30 percent of its profits to its shareholders.
(answers format: keep 4 digits after the decimal point. For example: 0.1234)
What are the values for ROE
What is the value of b, i.e., retention ratio? .-7
What is the internal growth rate?
What is the sustainable growth rate?
and ROA
?
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