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Basic Question 2 of 2
If the return on equity of a firm is 15 percent and the retention ratio is 40 percent, the sustainable growth rate of the firm's earnings and dividends should be:
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I just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu
Learning Outcome Statements
calculate and interpret the sustainable growth rate of a company and demonstrate the use of DuPont analysis to estimate a company's sustainable growth rate;
CFA® 2025 Level II Curriculum, Volume 3, Module 21.