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%
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%
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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
Transcribed Image Text: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%
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