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Retention ratio is 0 55 and return on equity is 12...

This question belongs to Commerce Financial Management
Financial Management
?

Retention ratio is 0.55 and return on equity is 12.5% then growth retention model would be

Answer & Solution
Correct Answer: Option B
Growth retention model = Return on equity × Retention ratio
= 12.5% × 0.55 = 6.88%
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