A firm has a return on equity of 16 percent, a return on assets of 11 percent, and a 40 percent dividend payout ratio. What is the sustainable growth rate?
A) 5.72 percent
B) 6.84 percent
C) 7.12 percent
D) 9.58 percent
E) 10.62 percent

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The Answer of A firm has a return on equity of 16 percent, a return on assets of 11 percent, and a 40 percent dividend payout ratio. What is the sustainable growth rate?
A) 5.72 percent
B) 6.84 percent
C) 7.12 percent
D) 9.58 percent
E) 10.62 percent

A Firm Has a Return on Equity of 16 Percent