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A Firm Has an ROE of 7

Question 225

Multiple Choice

A firm has an ROE of 7.5% and an ROA of 13.5%. What is the internal growth rate if the firm has a 40% dividend payout ratio?


A) 4.71%
B) 5.71%
C) 8.10%
D) 8.81%
E) 9.19%

Correct Answer:

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