The Parodies Corp. has a 22 percent return on equity and a 23 percent payout ratio. What is its sustainable growth rate?

The Parodies Corp. has a 22 percent return on equity and a 23 percent payout ratio. What is its sustainable growth rate?    A.  18.68 percent B.  19.25 percent C.  19.49 percent D.  20.39 percent E.  22.00 percent Retention ratio = 1 - 0.23 = 0.77 Sustainable growth rate = (0.22 × 0.77)/[1 - (0.22 × 0.77)] = 20.39 percent

89.

Consider the following information for Kaleb's Kickboxing:    What is the sustainable rate of growth?    A.  11.87 percent B.  12.29 percent C.  12.52 percent D.  13.42 percent E.  13.58 percent Return on equity = .088 × (1/0.62) × (1 + 0.60) = 0.2270968 Retention ratio = 1 - ($15,810/$31,000) = 0.49 Sustainable growth rate = (.2270968 × 0.49)/[1 - (.2270968 × 0.49)] = 12.52 percent

90.

What is the sustainable growth rate assuming the following ratios are constant?       A.  10.30 percent B.  10.53 percent C.  10.67 percent D.  10.89 percent E.  11.01 percent Return on equity = .08 × 1.46 × 1.20 = 0.14016 Retention ratio = 1 - 0.32 = 0.68 Sustainable growth rate = (.14016 × 0.68)/[1 - (0.14016 × 0.68)] = 10.53 percent