← Every exhibit

Table Table 2 Growth that compounds

What do synthetic financing scenarios show?

ScenarioROERetention ratioSynthetic SGRIf target exceeds identity
Base retention12%70%8.4%Name external financing or changed assumptions
Higher payout12%45%5.4%Retained earnings support less growth under the identity
Higher ROE and retention16%75%12.0%Verify whether capital base and earnings definition remain comparable

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Reference & Evidence

Source: Table from this essay. Sources and interpretation are given in the article.