Determine sustainable rate of growth


Question: The Green Giant has a 5 percent profit margin and a 40 percent dividend payout ratio. The total asset turnover is 1.40 & the equity multiplier is 1.50. Determine the sustainable rate of growth? 

[A] 6.72%

[B] 6.80%

[C] 6.83%

[D] 6.30%

[E] 6.53%

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Finance Basics: Determine sustainable rate of growth
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