A company's ROA and ROE are constant as 4% and 10% respectively and these two variables...

Transcribed Image Text:

A company's ROA and ROE are constant as 4% and 10% respectively and these two variables are defined as net income dividend by the previous year's total assets and equity respectively. The company always pays out 50% of its net income as dividend. What is the maximum growth rate in firm size (total assets) if the only source for asset growth is retained earnings (please report the answer as a decimal number and keep THREE decimal places such as 0.018)? Your Answer: Answer 5 6 Q3 7 Ne 8 ne 9 Ne 10 EFI 11 12 13 Q5 14 15 sal 16 cos 23456780222 21 17 del 18 19 A company's ROA and ROE are constant as 4% and 10% respectively and these two variables are defined as net income dividend by the previous year's total assets and equity respectively. The company always pays out 50% of its net income as dividend. What is the maximum growth rate in firm size (total assets) if the only source for asset growth is retained earnings (please report the answer as a decimal number and keep THREE decimal places such as 0.018)? Your Answer: Answer 5 6 Q3 7 Ne 8 ne 9 Ne 10 EFI 11 12 13 Q5 14 15 sal 16 cos 23456780222 21 17 del 18 19