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The Green Giant Has a 5% Profit Margin and a 40

Question 107

Multiple Choice

The Green Giant has a 5% profit margin and a 40% dividend payout ratio. The total asset turnover is 1.40 and the equity multiplier is 1.50. What is the sustainable rate of growth?


A) 6.30%
B) 6.53%
C) 6.72%
D) 6.80%
E) 6.83%

Correct Answer:

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