Titanic Corporation has a return on equity (ROE) of 38.50% and a retention ratio of 68.25%. Calculate the sustainable growth rate. A. 18.21% B. 24.37% C. 26.28% D. 31.09% E. 45.62%

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter13: Capital Structure Concepts
Section: Chapter Questions
Problem 6P
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Calculate the sustainable growth rate

Titanic Corporation has a return on
equity (ROE) of 38.50% and a
retention ratio of 68.25%. Calculate
the sustainable growth rate.
A. 18.21%
B. 24.37%
C. 26.28%
D. 31.09%
E. 45.62%
Transcribed Image Text:Titanic Corporation has a return on equity (ROE) of 38.50% and a retention ratio of 68.25%. Calculate the sustainable growth rate. A. 18.21% B. 24.37% C. 26.28% D. 31.09% E. 45.62%
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