Exhibit 9.2 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) Assume that the dividend payout ratio will be 75 percent when the rate on long-term government bonds falls to 8 percent. Because investors are becoming more risk averse, the equity risk premium will rise to 7 percent and investors will require a 15 percent return. The return on equity will be 12 percent. Refer to Exhibit 9.2. What is the expected sustainable growth rate
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Ответ:
3%
Explanation:
Expected sustainable growth rate = (1 - Payout ratio) * Return on Equity
Expected sustainable growth rate = (1 - 0.75) * 12%
Expected sustainable growth rate = 0.25 * 0.12
Expected sustainable growth rate = 0.03
Expected sustainable growth rate = 3%
So, the expected sustainable growth rate is 3%
Ответ:
answer is D
Explanation:
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