Sustainable growth rate

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1. The duration of a $650 million portfolio is 15 years. $350 million in new securities are added to the portfolio, decreasing the duration of the portfolio to 13.25 years. What is the duration of the 350 million in new securities?

13.00 years.

12.25 years.

9.50 years.

10.00 years.

2. Hayesville Corporation tripled its shareholders' equity during the year 2017. Hayesville did not issue any new equity, repurchase any equity, or pay out any dividends during the year. What is Hayesville t's sustainable growth rate for 2017?

150%.

100%.

200%.

300%.

50%.

Reference no: EM132005964

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