1. Last year Lakesha’s Lounge Furniture Corporation had an ROE of 17.0 percent and a dividend payout ratio of 23 percent. What is the sustainable growth rate? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
2. National Gas stock is currently selling at OR 0.804. Assume that you buy the stock and hold it for one year and then sell it for OR 0.704, the Company distributed OR 0.050 during the holding period.
Instructions:
Calculate your holding period rate of return.