A Company Has a Retention Ratio of 80 Percent

question 109

Multiple Choice

A company has a retention ratio of 80 percent. If the company's return on assets is 9.2 percent and the return on equity is 16.4 percent, what is the sustainable growth rate?

• A) 1.84%
• B) 13.12%
• C) 16.40%
• D) 7.36%
• E) 3.28%

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