Answer:
11.21%
Explanation:
Calculation for What is the company’s sustainable growth rate
Sustainable growth rate=ROE*b/1-ROE*b
Let plug in the formula
Sustainable growth rate=14.4%*(100%-30%)/1-=14.4%*(100%-30%)
Sustainable growth rate=14.4%*70%/1-14.4%*70%
Sustainable growth rate=0.1008/0.8992
Sustainable growth rate=0.11209*100
Sustainable growth rate=11.21% approximately
Therefore the Sustainable growth rate will be 11.21%
