Determine sustainable growth rate for given net income


Suppose a firm has net income of $50, dividends of $15, assets of $1,200, and a debt-equity ratio of 3.5%. What is the sustainable growth rate?

1. 17.6%
2. 13.0%
3. 11.1%
4. 9.9%
5. 3.1%

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Finance Basics: Determine sustainable growth rate for given net income
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