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The Following Information Relates to Yutter Corporation -What Is Yutter's Sustainable Equity Growth Rate?
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question 64

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The following information relates to Yutter Corporation:
 Year 1 Net income-year ended 12/31$12,500 Dividends 3,000 Return on net operating assets 13% Return on equity 15% Cost of equity 12%\begin{array}{lr}&\text { Year } 1\\\text { Net income-year ended } 12 / 31 & \$ 12,500 \\\text { Dividends } & 3,000 \\\text { Return on net operating assets } & 13 \% \\\text { Return on equity } & 15 \% \\\text { Cost of equity } & 12 \%\end{array}
-What is Yutter's sustainable equity growth rate?


Definitions:

Development

Process by which the first cell of a multicelled organism gives rise to an adult.

Gastrulation

Animal developmental process by which cell movements produce a three-layered gastrula.

Blastula

Hollow ball of cells that forms as a result of cleavage.

Zygote

Diploid cell that forms when two gametes fuse; the first cell of a new individual.

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