The Cornelius Company has an ROE of 14.8 percent and a payout ratio of 40 percent. What is the company's sustainable growth rate? (Do not round Intermedlate calculations an enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Sustainable growth rate

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter12: Corporate Valuation And Financial Planning
Section12.6: Additional Funds Needed (afn) Equation Method
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The Cornellus Company has an ROE of 14.8 percent and a payout ratio of 40
percent. What is the company's sustainable growth rate? (Do not round Intermedlate
calculatlons an enter your answer as a percent rounded to 2 decimal places, e.g.,
32.16.)
Sustainable growth rate
Transcribed Image Text:The Cornellus Company has an ROE of 14.8 percent and a payout ratio of 40 percent. What is the company's sustainable growth rate? (Do not round Intermedlate calculatlons an enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Sustainable growth rate
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