Metro Credit Union is forecasting a return on equity of 12 percent for this year. The board of directors wants to maintain its current policy of paying out dividends that amount to 20% of any net earnings the credit union earns. How quickly can Metro Credit Union's assets grow this year without jeopardizing its capital to assets ratio? (A) 12 percent (B) 9.3 percent (C) 9.6 percent (D) 6 percent
Metro Credit Union is forecasting a return on equity of 12 percent for this year. The board of directors wants to maintain its current policy of paying out dividends that amount to 20% of any net earnings the credit union earns. How quickly can Metro Credit Union's assets grow this year without jeopardizing its capital to assets ratio? (A) 12 percent (B) 9.3 percent (C) 9.6 percent (D) 6 percent
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Which option is correct?
Transcribed Image Text:Metro Credit Union is forecasting a
return on equity of 12 percent for this
year. The board of directors wants to
maintain its current policy of paying out
dividends that amount to 20% of any net
earnings the credit union earns. How
quickly can Metro Credit Union's assets
grow this year without jeopardizing its
capital to assets ratio?
(A) 12 percent
(B) 9.3 percent
(C) 9.6 percent
(D) 6 percent
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