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Tanex Inc Has a Return on Assets (ROA) of 12%, a a Return

Question 15

Multiple Choice

Tanex Inc. has a return on assets (ROA) of 12%, a return on equity (ROE) of 15%, and a dividend payout ratio of 60%. Based on the sustainable growth formula, Tanex's estimated growth is:


A) 4.8%.
B) 6.0%.
C) 7.2%.
D) 9.0%.

Correct Answer:

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