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What Is the Sustainable Growth Rate of a Firm with the Following

Question 68

Multiple Choice

What is the sustainable growth rate of a firm with the following selected financial results  Sales $20,000 Net income $1,000 Equity multiplier 2.5x Assets $10,000 Anmual Dividend $300\begin{array}{ll}\text { Sales } & \$ 20,000 \\\text { Net income } & \$ 1,000 \\\text { Equity multiplier } & 2.5 \mathrm{x} \\\text { Assets } & \$ 10,000 \\\text { Anmual Dividend } & \$ 300\end{array}


A) 25%
B) 7%
C) 8.75%
D) 17.5%

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