A Corporation has a dividend payout ratio of 25 percent and a sustainable growth rate of 12 percent. What is the company's return on equity (ROE)? A. 0.26 B. 0.16 C. 0.18 D. 0.24 E. 0.12

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter7: Analysis Of Financial Statements
Section: Chapter Questions
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Hii expert please given correct answer general accounting

A Corporation has a dividend payout ratio of 25 percent and a
sustainable growth rate of 12 percent. What is the company's return
on equity (ROE)?
A. 0.26
B. 0.16
C. 0.18
D. 0.24
E. 0.12
Transcribed Image Text:A Corporation has a dividend payout ratio of 25 percent and a sustainable growth rate of 12 percent. What is the company's return on equity (ROE)? A. 0.26 B. 0.16 C. 0.18 D. 0.24 E. 0.12
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