If the Return on Equity Is 5% and the Firm $2 \%$

question 12

Multiple Choice

If the return on equity is 5% and the firm has a dividend payout ratio of 40%,what is the sustainable growth rate?

• A) \( 2 \% \)
• B) \( 3 \% \)
• C) \( 5 \% \)
• D) \( 7 \% \)

---

Definitions:

Aggregation

The process of combining multiple units or data into a single group or total to simplify analysis or understanding.

Objectification

The action of treating a person or sometimes an animal as an object or thing, often disregarding personal agency or dignity.

Acculturation

The process by which individuals adopt the cultural traits or social patterns of another group, often occurring when different cultures come into direct continuous contact.

Collection

The act of gathering items or data together, often for a purpose of analysis, display, or preservation.