A firms ROE is 30%, dividends are 3,000,000, net income is 25% of sales and sales is 27,000,000. What is the sustainable rate of growth? a) 16.67% b) 3.33% c) 13.33% d) 7.5%

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter7: Analysis Of Financial Statements
Section: Chapter Questions
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A firms ROE is 30%, dividends are 3,000,000, net income is 25% of sales and sales is 27,000,000. What is the sustainable rate of growth?

a) 16.67%

b) 3.33%

c) 13.33%

d) 7.5%

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