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Sustainable rate of growth

The Green Giant has a 5% profit margin and a 40% dividend payout ratio. The total asset turnover is 1.40 and the equity multiplier is 1.50. What is the sustainable rate of growth?
A. 6.30%
B. 6.53%
C. 6.72%
D. 6.80%
E. 6.83%

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The Green Giant has a 5% profit margin and a 40% dividend payout ratio. The total asset turnover is 1.40 and the equity multiplier is 1.50. What is the sustainable rate of ...

Solution Summary

Calculates Sustainable rate of growth.

$2.19