A Company Has a Return on Assets of 10

question 104

Multiple Choice

A company has a return on assets of 10.8 percent and a return on equity of 17.2 percent. If the company has a dividend payout ratio of 30 percent, what is the sustainable growth rate?

• A) 12.04%
• B) 7.56%
• C) 12.60%
• D) 5.16%
• E) 3.24%

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Definitions:

Polygenic Inheritance

A type of genetic inheritance where multiple genes determine a trait, resulting in a continuous range of possibilities.

Incomplete Dominance

Incomplete dominance is a genetic situation in which neither allele is dominant, resulting in an offspring with a phenotype that is a blend of the parental traits.

Codominance

A genetic scenario where two alleles are both expressed equally in the phenotype of the heterozygote, instead of one being dominant over the other.

Epistasis

A genetic interaction where the effect of one gene is modified by one or several other genes, which can mask or suppress the expression of the first gene.