Problem:
A firm has a retention ratio of 42 percent and a sustainable growth rate of 9.00 percent. The capital intensity ratio is 1.52 and the debt-equity ratio is .77.
Required:
What is the profit margin? Please describe in detail and provide step by step solution.
A.18.4 percent
B.11.11 percent
C.19.66 percent
D.16.88 percent
E.12.93 percent