Question

Assuming the following rates of a firm are constant, what is its sustainable growth rate? Total...

Assuming the following rates of a firm are constant, what is its sustainable growth rate?

  • Total asset turnover = 1.5
  • Profit margin = 5.0%
  • Equity multiplier = 2.4
  • Dividend payout ratio = 20%
A.

21.22%
B.

15.52%
C.

17.73%
D.

16.82%
E.

18.99%
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