Western Adventures Has Earnings Per Share of $2

question 49

Multiple Choice

Western Adventures has earnings per share of $2.30 and dividends per share of $1.25. The total equity of the firm is $850,000. There are 40,000 shares of stock outstanding. What is the sustainable rate of growth?

• A)2.14%
• B)3.31%
• C)4.94%
• D)5.32%
• E)6.59%

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