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%.

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Definitions:

Almonds

Edible seeds from the almond tree, used in various foods and as a source of oil.

Indirect Product Cost

Costs not directly traceable to specific units of product, such as manufacturing overhead, which includes expenses like factory utilities.

Shipping Costs

Expenses incurred from transporting goods from seller to buyer.

Finished Milk Chocolate Bars

The final product of a chocolate manufacturing process, ready for packaging and sale to consumers.