What Proportion of Earnings Is Being Plowed Back into the Firm

question 107

Multiple Choice

What proportion of earnings is being plowed back into the firm if the sustainable growth rate is 8% and the firm's ROE is 20%?

• A) 60%
• B) 80%
• C) 20%
• D) 40%

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Dependent on or subject to one or more conditions or requirements being met; not absolute.