Kindly help me Accounting question Calculate the sustainable growth rate if ROE is 42.20% andthe retention ratio is 75.37%.A. 12.42%B. 22.75%C. 28.79%D. 31.81%E. 46.89%

Step 1: Define Retention Ratio Business institutions identify the retention ratio to maintain…

Answered: Calculate the sustainable growth rate…

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter14: Valuation: Market-based Approach

Section: Chapter Questions

Problem 1CIC

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Calculate the sustainable growth rate if ROE is 42.20% and the retention ratio is 75.37%. A. 12.42% B. 22.75% C. 28.79% D. 31.81% E. 46.89%