Question: 1. Acme Dynamite is maintaining a solid debt ratio of 37 with total assets of $1,250 million, If its D/E ratio is 65 and it

 1. Acme Dynamite is maintaining a solid debt ratio of 37

1. Acme Dynamite is maintaining a solid debt ratio of 37 with total assets of $1,250 million, If its D/E ratio is 65 and it has NOI of $150 million, wht is its return on equity? a. 27.6% b.21.1% c. 14.6% d. 8.9% e. None of the above. 2. Now that you calculated the ROE for Acme Dynamite, if the firm pays a dividend with a DPR of 22%, what is its sustainable growth rate? a. 21.5% b. 16.5% c. 11.49 d. 6.9% e. None of the above

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