United Financial Corp Had a Return on Equity of 15

question 89

Multiple Choice

United Financial Corp had a return on equity of 15%.The corporation's earnings per share was $6.00,its dividend payout ratio was 40% and its profit-retention rate was 60%.If these relationships continue,what will be United Financial Corp's internal growth rate?

• A) 6.0%
• B) 8.6%
• C) 9.0%
• D) 15.6%

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