Sound Enterprises is looking to lever up the firm. Their ROE was 10% with a debt...

Sound Enterprises is looking to lever up the firm. Their ROE was 10% with a debt ratio 0.10. If they pay out 30% of earnings, then what will be the new sustainable growth rate if their new debt ratio is 0.250? (Use the approximation)

8.4%

9%

10%

12%

Expert Solution

jeff jeffy answered 1 year ago

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