A firm had earnings per share of $3.25 for the year.The book value per share at the beginning of the year was $13.The firm paid out $.975 in dividends per share at the end of the year.If the rate of return on book value remains constant from year to year,and the firm maintains the same earnings retention ratio,what will the sustainable growth rate be for the foreseeable future?

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The Answer of A firm had earnings per share of $3.25 for the year.The book value per share at the beginning of the year was $13.The firm paid out $.975 in dividends per share at the end of the year.If the rate of return on book value remains constant from year to year,and the firm maintains the same earnings retention ratio,what will the sustainable growth rate be for the foreseeable future?

A Firm Had Earnings Per Share of $3