A)Company has a return on equity of ROE= 20 percent, and from earnings per share of EPS=5, it pays a 2 dividend .what is the company's sustainable growth rate ? B) If the return on the equity for a firm is 15 percent and the retention ratio is 40 percent, what is the sustainable growth rate of earnings and dividends ?

A)Company has a return on equity of ROE= 20 percent, and from earnings per share of EPS=5, it pays a 2 dividend .what is the company's sustainable growth rate ? B) If the return on the equity for a firm is 15 percent and the retention ratio is 40 percent, what is the sustainable growth rate of earnings and dividends ?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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