A company has a return on equity (ROE) of 20 percent, and from earnings per share of
Question:
A company has a return on equity (ROE) of 20 percent, and from earnings per share of $5 it pays a $2 dividend. What is the company’s sustainable growth rate?
a. 8 percent
b. 10 percent
c. 12 percent
d. 20 percent.
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The companys sustainable growth rate SGR can be calculated using the following formula SGR ROE Reten...View the full answer
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Related Book For
Fundamentals Of Investments Valuation And Management
ISBN: 9781266824012
10th Edition
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
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