Web Cites Research projects a rate of return of 20% on new projects. Management plans to plow back 30% of all earnings into the firm. Earnings this year will be $3 per share, and investors expect a 12% rate of return on stocks facing the same risks as Web Cites. a. What is the sustainable growth rate

6%

Explanation:

Sustainable growth rate is the rate of growth a company can afford in the long term

Sustainable growth rate (g)  = b x ROE

b = retention rate. It is the portion of earnings that is not paid out as dividends = 30%

ROE = return on equity = 20%

Return on equity is an example of a profitability ratio.

Profitability ratios measure the ability of a firm to generate profits from its asset

g = 0.3 x 0.2 = 0.06 = 6%

(i know i'm late but the answer's "things about yourself" because you want to list things you're capable of, why you want to open up the business, the amount of money you're putting into it,etc.) i'm guessing you take online school small business, the answers to the quizzes are all over quizlet. just look up your question and type quizlet after it and it'll pop up.