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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Corporate Finance Core Principles and Applications

ISBN: 978-1259289903

5th edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan

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