In most countries, contract and temporary employees are much more expensive to lay off than full-time employees. A. True
B. False

A

Explanation:

11.31%

Explanation:

sustainable growth rate = retention rate x return on equity

return on equity (ROE) = net income / shareholders' equity = $18,500 / $99,000 = 18.69%

retention rate = 1 - dividend payout ratio

dividend payout ratio = dividends / net income = $7,300 / $18,500 = 39.46%

retention rate = 1 - 39.46% = 60.54%

sustainable growth rate = 0.6054 x 0.1869 = 0.1131 = 11.31%