Exam (elaborations)
Financial Management Exam 2 Multiple Choice
- Course
- Institution
What proportion of earnings is being plowed back into the firm if the sustainable growth rate is 8% and the firm's ROE is 20%? a. 60% b. 80% c. 20% d. 40% - correct answer d. 40% 8% = 20% × plowback; Plowback = 40% A firm has 120,000 shares of stock outstanding, a sustainable rate of gro...
[Show more]