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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%?


Definitions:

Atm

A unit of pressure defined as atmospheric pressure, equivalent to the pressure exerted by the Earth's atmosphere at sea level.

Volume

The quantity of three-dimensional space occupied by a substance or item.

°C

A unit of temperature on the Celsius scale, a temperature scale originally known as the centigrade scale, with 0°C denoting the freezing point of water and 100°C its boiling point at sea level.

Atm

A unit of pressure defined as being equal to the pressure exerted by the Earth's atmosphere at sea level; approximately 101.325 kPa.

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