If a Company Has a Return on Equity of 25

question 55

Multiple Choice

If a company has a return on equity of 25% and wants a growth rate of 10%, how much of ROE should be retained?

• A) 40%
• B) 50%
• C) 60%
• D) 70%

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Definitions:

Security

A financial asset, such as a stock or bond, that can be traded in the financial market.

Manufacturer

A manufacturer is a person or company that makes goods for sale, especially on a large scale, involving processes like designing, fabricating, and marketing.

Conditional Sale Agreement

A contract for the sale of goods where the purchase price is paid in installments and the ownership of the goods is transferred to the buyer only after all payments have been made.

Provincial Legislation

Laws enacted by the legislative assemblies of provinces in countries with a federal system of government.