Question

Sustainable growth is a product of:

   a.  
Operating performance and financial policy

   b.  
ROA and ROE

   c.  
Net profit margin, Asset turnover ratio, Equity multiplier ratio, and Retention rate

   d.  
a and c

Answer 1

Hello Sir/ Mam

YOUR REQUIRED ANSWER IS OPTION C

We know that:

Hence,

Sustainable growth is a product of Net profit margin, Asset turnover ratio, Equity multiplier ratio, and Retention rate

I hope this solves your doubt.

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