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DDM Company Has an Expected Profit Margin of 15 Percent,turnover

Question 76

Multiple Choice

DDM Company has an expected profit margin of 15 percent,turnover ratio of 2,and a leverage ratio of 0.5.The firm had an EPS of $2 and paid a dividend of $1.05 per share.What is DDM's sustainable growth rate?


A) 8.125%
B) 7.875%
C) 7.125%
D) 6.875%

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