Answered: of the Garnett Corp. has a 22 percent…

of the Garnett Corp. has a 22 percent ROE and a 15 percent payout ratio, what is its sustainable growth rate? (Do not round your intermediate calculations.) Multiple Choice 23% 19.59% 3.41%

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter12: The Cost Of Capital

Section: Chapter Questions

Problem 7P

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Question

If the Garnett Corp. has a 22 percent ROE and a 15 percent payout ratio, what is its
sustainable growth rate? (Do not round your intermediate calculations.)
Multiple Choice
23%
19.59%
3.41%
24.59%
23.94%

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