A firm has a retention ratio of 45 percent and a sustainable growth rate of 6.2 percent. The capital intensity ratio is 1.2 and the debt-equity ratio is 0.64. What is the profit margin?

A. 6.28 percent
B. 7.67 percent
C. 9.47 percent
D. 12.38 percent
E. 14.63 percent

Ans: E. 14.63 percent

Business

You might also like to view...

Five welding jobs are waiting to be processed. Their processing times and due dates are given below. Using the critical ratio dispatching rule, in which order should the jobs be processed? All dates are specified as days from today

Job Processing Time (days) Job due date (days) A 4 7 B 2 4 C 8 11 D 3 5 E 5 11 A) B, D, A, E, C B) C, D, A, B, E C) C, E, A, D, B D) E, B, A, D, C E) B, D, A, C, E

Business

In the build-up stage of a successful project, it is important that:

A) An adequate budget exists. B) Top management support exists. C) The project personnel are in a state of flux. D) There is a clear sense of earned value management.

Business