What is the minimum growth rate this company needs


Question: The following is your company's capital structure & other financial information: Long-term debt: $400,000 @ 15% interest rate (before tax) Equity: $600,000 Tax Rate: 40% Beta of the Co. 1.5 The current yield rate of the 10-year Treasury Bond is 5% Normal Risk Premium is 10% 48. What is the minimum growth rate this company needs to achieve to satisfy the Shareholders' Expectation on their expectation? Please do not put "%" in your answer. Just put the number (for example, 10 for 10%)

 

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Accounting Basics: What is the minimum growth rate this company needs
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