A stock has a return on equity of 5.7% and a plowback ratio of 55%. What...

A stock has a return on equity of 5.7% and a plowback ratio of 55%. What is the sustainable growth rate? Enter you answer as a percentage. Do not include the percentage sign in your answer. Enter your response below rounded to 2 DECIMAL PLACES.

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Expert Solution

Sustainable growth rate, g = ROE * Plowback Ratio

Sustainable growth rate, g = 5.7% * 55%

Sustainable growth rate, g = 3.14%

jeff jeffy answered 2 years ago

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