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the iron river company has an roe of 13.4 percent and a payout ratio of 40 percent. what is the company’s sustainable growth rate? (do not round intermediate calculations and enter your answer as a percent
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27 votes
27 votes
the iron river company has an roe of 13.4 percent and a payout ratio of 40 percent. what is the company’s sustainable growth rate? (do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

User Cse
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1 Answer

20 votes
20 votes

Answer:

8.04%

Step-by-step explanation:

13.4%*(1-40%)

=13.4%*60%

=8.04%

User Brandoncontreras
by
2.8k points
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