The Dent Company has an ROE of 13.15 percent and a payout ratio of 30 percent. a.
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The Dent Company has an ROE of 13.15 percent and a payout ratio of 30 percent.
a. What is the company’s sustainable growth rate?
b. Can the company’s actual growth rate be different from its sustainable growth rate? Why or why not?
c. How can the company increase its sustainable growth rate?
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a The sustainable growth rate is Sustainable growth rate ROE b 1 ROE b Where b Retention ratio 1 Pay...View the full answer
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Related Book For
Corporate Finance Core Principles and Applications
ISBN: 978-1259289903
5th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
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