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%

---

Definitions:

Citizenship Values

Ethical standards and behaviors that relate to an individual's responsibilities, contributions, and participation within a society or community.

Community

A group of people living in the same place or having a particular characteristic in common, often marked by a sense of fellowship and shared values.

Marketization

The process by which sectors not traditionally subject to market forces are exposed to competitive pressures, often through privatisation or deregulation.

Charitable Contributions

Financial or material donations made to non-profit organizations or causes for the purpose of aiding those in need or supporting societal improvements.