If a firm pays out 20% of its earnings as dividends and has averaged a 20 percent return on equity, how quickly can the firm grow while maintaining a constant debt to equity mix?
A) 6.4%.
B) 10.2%.
C) 16.3%.
D) 19.0%.

Question

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The Answer of If a firm pays out 20% of its earnings as dividends and has averaged a 20 percent return on equity, how quickly can the firm grow while maintaining a constant debt to equity mix?
A) 6.4%.
B) 10.2%.
C) 16.3%.
D) 19.0%.

If a Firm Pays Out 20% of Its Earnings as Dividends