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Basic Question 0 of 4
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 was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
Martin Rockenfeldt
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.