Tanex Inc Has a Return on Assets (ROA) of 12%, a a Return

question 15

Multiple Choice

Tanex Inc. has a return on assets (ROA) of 12%, a return on equity (ROE) of 15%, and a dividend payout ratio of 60%. Based on the sustainable growth formula, Tanex's estimated growth is:

• A) 4.8%.
• B) 6.0%.
• C) 7.2%.
• D) 9.0%.