A technology company reports the following financial metrics: Earnings per share (EPS) = $3.20 • Dividend per Share = $0.64 Return on Equity (ROE) = 16% Price-to-Earnings (PE) Ratio = 15 Calculate the company's sustainable growth rate. Option: a. 12.80% b. 10.40% c. 8.00% d. 14.40%
A technology company reports the following financial metrics: Earnings per share (EPS) = $3.20 • Dividend per Share = $0.64 Return on Equity (ROE) = 16% Price-to-Earnings (PE) Ratio = 15 Calculate the company's sustainable growth rate. Option: a. 12.80% b. 10.40% c. 8.00% d. 14.40%
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
Problem 6P
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Transcribed Image Text:A technology company reports the following financial metrics:
Earnings per share (EPS) = $3.20
•
Dividend per Share = $0.64
Return on Equity (ROE) = 16%
Price-to-Earnings (PE) Ratio = 15
Calculate the company's sustainable growth rate.
Option:
a. 12.80%
b. 10.40%
c. 8.00%
d. 14.40%
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