Bill's has a profit margin of 5 percent and a dividend payout ratio of 20 percent. The total asset turnover is 1.6 and the debt-equity ratio is .4. What is the sustainable rate of growth?
A) 11.20 percent
B) 9.60 percent
C) 10.89 percent
D) 9.26 percent
E) 9.84 percent
Correct Answer:
Verified
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