The retention ratio is 0.55 and the return on equity is 12.5% then the growth re

Question

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

Options:

A . 0.1195

B . 0.06875

C . 0.1305

D . 0.2272

Answer: Option B
Answer: (b).0.06875

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