GE Has a Return on Equity of 20% and a Dividend

question 34

Multiple Choice

GE has a return on equity of 20% and a dividend payout ratio of 25%. Its sustainable earnings growth rate is

• A) 15%
• B) 10%
• C) 5%
• D) 12%

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Definitions:

Frustration Of Purpose Doctrine

The Frustration of Purpose Doctrine is a legal principle allowing contract parties to be relieved from performing their obligations when an unforeseen event undermines the contract’s original purpose.

Impossibility Of Performance Doctrine

A legal principle that releases parties from their contractual obligations when an event occurs making performance objectively impossible.

Tender Of Performance

Tender of Performance refers to an offer by one party to perform their obligations under a contract, demonstrating readiness and willingness to fulfill the contract terms.

Bilateral Contract

A contract type involving two parties where each promises to perform an act in exchange for the other party's act.