1. A company with sustainable Return on Equity (ROE) of 20% which is reinvesting 75% of earnings can potentially sustain what rate of growth in revenue and profits?

2. Which of the following does not provide an indication of whether a listed company is cheap or expensive?
 a. Price to cash flow multiple
 b. Return on Equity (ROE) percentage
 c. Price to book ratio
 d. Enterprise Value to EBITDA multiple

Answer rating: 100% (QA)

The detailed answer for the above question is provided below 1 A company with sustainable Return on Equity ROE of 20 which is reinvesting 75 of earnin... View the full answer