Q403
Retention ratio is 0.60 and return on equity is 15.5% then growth retention model would be
A.
14.90%
B.
25.84%
C.
16.10%
D.
9.30%
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Growth retention model = Return on equity × Retention ratio = 15.5% × 0.60 = 9.30%