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Examveda

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%

Answer: Option D

Solution(By Examveda Team)

Growth retention model = Return on equity × Retention ratio
= 15.5% × 0.60 = 9.30%

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