# help!

this one The following q is a bit tricky. Based on the following data, what is ABC Co.'s projected growth rate? Bear Normal Bull Probability 30% 40% 30% ROE 10% 15% 30% b 60% 40% 30% A) 5.0. B) 7.0. C) 7.5. D) 6.9. b??? what is that? do they mean rr> g = ROE * rr I got D what are they asking here?

what is b in the question, is that supposed to be divident payout rate or retention rate or what? If so just find the g, then do probability*g for each one and take the sum.

tvPM Wrote: ------------------------------------------------------- > what is b in the question, is that supposed to be > divident payout rate or retention rate or what? If > so just find the g, then do probability*g for each > one and take the sum. i did, and got D, so I think that is it.

what if is b from benefits, meaning payout, not retention?

map1 Wrote: ------------------------------------------------------- > what if is b from benefits, meaning payout, not > retention? uhhhhh!!! damn these people. well, if it is payout, rr is = 1 - DPO so just 1 extra step