Firm has a retention ratio of 45 percent and a sustainable


Firm has a retention ratio of 45 percent and a sustainable growth rate of 6.2 percent. The capital intensity ratio is 1.2 and the debt-equity ratio is 0.64. What is the profit margin?

6.28 percent
7.67 percent
9.47 percent
12.38 percent
14.63 percent

 

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Finance Basics: Firm has a retention ratio of 45 percent and a sustainable
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