The Green Giant has a 5 percent profit margin and a 34 percent dividend payout ratio. The total asset turnover is 1.6 times and the equity multiplier is 1.5 times. What is the sustainable rate of growth? Multiple Choice O 16.32% 12.00% 2.40% 8.60% 12.90%

The Green Giant has a 5 percent profit margin and a 34 percent dividend payout ratio. The total asset turnover is 1.6 times and the equity multiplier is 1.5 times. What is the sustainable rate of growth? Multiple Choice O 16.32% 12.00% 2.40% 8.60% 12.90%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The Green Giant has a 5 percent profit margin and a 34 percent dividend payout ratio. The total asset turnover is 1.6 times and the equity
multiplier is 1.5 times. What is the sustainable rate of growth?
Multiple Choice
16.32%
12.00%
2.40%
8.60%
12.90%

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