Question

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.)

Answer 1

8.04%

Step-by-step explanation:

13.4%*(1-40%)

=13.4%*60%

=8.04%