ROE = 14.3% Payout Ratio = 42% Sustainable Growth Rate = ROE * (1 - Payout Ratio) Sustainable Growth Rate = 14.30% * (1 - 0.42) Sustainable Growth Rate = 14.30% * 0.58 Sustainable Growth Rate = 8.29% Solution ROE = 14.3% Payout Ratio = 42% Sustainable Growth Rate = ROE * (1 - Payout Ratio) Sustainable Growth Rate = 14.30% * (1 - 0.42) Sustainable Growth Rate = 14.30% * 0.58 Sustainable Growth Rate = 8.29%.