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    Sustainable rate of growth

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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 growth?
    A. 6.30%
    B. 6.53%
    C. 6.72%
    D. 6.80%
    E. 6.83%

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    https://brainmass.com/business/accounting/sustainable-rate-growth-233685

    Solution Preview

    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

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