Problem:
Stop and Go has a 5 percent profit margin and a 44 percent dividend payout ratio. The total asset turnover is 1.66 and the debt-equity ratio is .50.
Required:
Question: What is the sustainable rate of growth?
- 8.47 percent
- 5.91 percent
- 6.12 percent
- 7.49 percent
- 6.52 percent
Note: Please explain comprehensively and give step by step solution.