calculate the sustainable earnings growth rate of a firm with ROE of 17.2% and earnings retention...

calculate the sustainable earnings growth rate of a firm with ROE of 17.2% and earnings retention rate of 0.5

Expert Solution

Information provided:

Return on equity= 17.2%

Retention rate= 0.50

Sustainable growth rate= Return on equity* Retention rate

= 0.172*0.50

= 0.0860*100

= 8.60%.

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jeff jeffy answered 1 year ago

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