Fleur International had a 3% profit margin and a 35% dividend payout ratio. The total asset turnover is 1.25 and the equity multiplier is 1.30. What is the sustainable growth rate?

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The sustainable growth rate is calculated as follows:Sustainable growth rate = (Profit margin * Total asset turnover * Equity multiplier * Dividend payout ratio) / (1 - Dividend payout ratio)= (0.03 * 1.25 * 1.30 * 0.35) / (1 - 0.35)= 0.0327 or 3.27%

Fleur International Had a 3% Profit Margin and a 35