A Firm Has an ROE of 7

question 256

Multiple Choice

A firm has an ROE of 7.5% and an ROA of 13.5%. What is the internal growth rate if the firm has a 40% dividend payout ratio?

• A) 4.71%
• B) 5.71%
• C) 8.10%
• D) 8.81%
• E) 9.19%

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