Determination of company sustainable growth rate

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The Steiben Company has a ROE of 8.5 percent and a payout ratio of 35 percent.

A-What is the company's sustainable growth rate?
B-Can the company's actual growth rate be different from its sustainable growth rate? why or why not?
C-how can the company change its sustainable growth rate ?

 

Reference no: EM1354163

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Determination of company sustainable growth rate : The Steiben Company has a ROE of 8.5% and a payout ratio of 35%. Determine the company's sustainable growth rate.
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