Prove That "Sustainable Growth Rate = Plowback Ratio X Return

question 49

Essay

Prove that "sustainable growth rate = plowback ratio x return on equity."

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Definitions:

Determination

In statistical analysis, it often refers to the extent to which variation in one variable determines or predicts the variation in another variable, commonly assessed with the coefficient of determination (R²).

Observations

Data points or values collected during an experiment or survey.

Multiple Coefficient

A broader term potentially indicating coefficients in multiple regression that represent the relationship between explanatory variables and the response variable.

Determination

Often associated with the coefficient of determination (R-squared), it measures the proportion of variance in the dependent variable predictable from the independent variable(s).