Choose two firms of interest from fiance.yahoo.com, finance. google.com, or money.msn.com and download their financial statements.
For each firm:
a. Write the ROE, the number of shares outstanding, the dividends per share, and the net income.
b. Compute the sustainable growth rate (g = b * ROE), where b equals the plowback ratio.
c. Calculate the total amount of dividends paid (dividends * number of shares outstanding), the dividend payout ratio (total dividends paid/net income), and the plowback ratio (1 - dividend payout ratio).
d. What does this information reveal about the ROE for the firms you selected?
Be sure to include the link for the financial statements that you select.