Traverse Industries has a return on equity (ROE) of 42.75% and a retention ratio of 71.50%. Calculate the sustainable growth rate. A. 18.21% B. 24.37% C. 26.28% D. 30.57%
Traverse Industries has a return on equity (ROE) of 42.75% and a retention ratio of 71.50%. Calculate the sustainable growth rate. A. 18.21% B. 24.37% C. 26.28% D. 30.57%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Traverse Industries has a return on equity
(ROE) of 42.75% and a retention ratio of
71.50%. Calculate the sustainable growth
rate.
A. 18.21%
B. 24.37%
C. 26.28%
D. 30.57%
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