If the Layla Corp. has a 15 percent return on equity and a 10 percent dividend payout

Question:

If the Layla Corp. has a 15 percent return on equity and a 10 percent dividend payout ratio, what is its sustainable growth rate?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...