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)
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ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
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Chapter7: Analysis Of Financial Statements
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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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