By how much will shareholders equity increase on the


1. A corporation declares $25 million in net income, $1 million in preferred stock dividends, and $7 million in common stock dividends. By how much will shareholders' equity increase on the balance sheet?

2. The Crash Davis Driving School has an ROE of 13.5 percent and a payout ratio of 34 percent.

What is its sustainable growth rate?

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Financial Management: By how much will shareholders equity increase on the
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