Problem:
A firm has a return on equity of 16 percent, a return on assets of 11 percent, and a 40 percent dividend payout ratio.
Required:
Question: What is the sustainable growth rate?
- 5.72 percent
- 6.84 percent
- 7.12 percent
- 9.58 percent
- 10.62 percent
Note: Please show guided help with steps and answer.