A Firm Has ROA of 12%,ROE of 20%,and a Retention

question 30

Multiple Choice

A firm has ROA of 12%,ROE of 20%,and a retention rate of 40%.What is the firm's internal growth rate?

• A)20%
• B)12%
• C)4.8%
• D)8%
• E)7.2%

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Definitions:

Trade Restrictions

Measures implemented by governments to control the flow of imports and exports, often to protect domestic industries from foreign competition.

Special Interest Groups

Organizations or groups that advocate for the specific interests of their members, often influencing policy decisions and public opinion.

Vote-Seeking Politicians

Politicians who prioritize actions and policies that are likely to appeal to voters, aiming to secure electoral success.