medium · Certified Financial Planner Risk Management
The Solis family owns stock in a company with a return on equity (ROE) of 13.0% and a dividend payout ratio of 60%.
If an investor requires an 8.9% return, what is the sustainable growth rate (g) of the company?
- 8.9%
- 5.2%
- 7.8%
- 3.7%
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