Pizza Pie maintains a constant debt-equity ratio of .55.The firm had net income of $14,800 for the year and paid $12,000 in dividends.The firm has total assets of $248,000.What is the sustainable growth rate?
A)3.38 percent
B)2.27 percent
C)1.78 percent
D)3.62 percent
E)4.97 percent

Question

Quizplus · Accepted Answer

The Answer of Pizza Pie maintains a constant debt-equity ratio of .55.The firm had net income of $14,800 for the year and paid $12,000 in dividends.The firm has total assets of $248,000.What is the sustainable growth rate?
A)3.38 percent
B)2.27 percent
C)1.78 percent
D)3.62 percent
E)4.97 percent

Pizza Pie Maintains a Constant Debt-Equity Ratio of