You Are Given the Following Information About a Firm: the Growth

question 117

Multiple Choice

You are given the following information about a firm: The growth rate equals 8 percent;return on assets (ROA) is 10 percent;the debt ratio is 20 percent;and the stock is selling at $36.What is the return on equity (ROE) ?

• A) 14.0%
• B) 12.5%
• C) 15.0%
• D) 2.5%
• E) 13.5%

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