The Raindrop Company has an ROE of 12.1 percent and a payout ratio of 25 percent.a. What is the company’s sustainable growth rate?b.  Can the company’s actual growth rate be different from its sustainable growth rate? Why or why not?c.  How can the company increase its sustainable growth rate?

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  • Sustainable Growth Rate The Raindrop Company has an ROE of 12.1 percent and a payout ratio of 25 percent.a. What is the company’s sustainable growth rate?b.  Can the company’s actual growth rate be different from its sustainable growth rate? Why or why not?c.  How can the company increase its sustainable growth rate?
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