What proportion of earnings is being plowed back into firm

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1. What proportion of earnings is being plowed back into the firm if the sustainable growth rate is 8% and the firm's ROE is 20%?

A) 60%

B) 80%

C) 20%

D) 40%

2.  You borrow a $328,000 add-on-interest loan from the credit union and will repay in equal installments over 19 years. The nominal rate of interest is 4.5%. Assuming daily repayment and compounding rate of interest, obtain the annual percentage rate?

a. 9.88%

b. 10.38%

c. 10.885

d. 11.38%

Reference no: EM131322496

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