Swanand

Answer: b - 5.9%

ROE = ROA x Equity Multiplier = 5.5 x 1.8 = 9.9%

EPS = PPS / P/E = 40/22 = 1.81

b = 1 - Div per share/EPS = 1 - 0.73/1.81 = 60%

g = ROE x b = 9.9 x 0.60 = 5.94%