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Basic Question 1 of 2

Which of the following will increase a company's sustainable growth rate of earnings?

A. increasing its dividend payout ratio.
B. increasing its return on equity.
C. decreasing its retention rate.

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I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes

Barnes

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® 2024 Level II Curriculum, Volume 3, Module 23.