Stop and Go has a 4.5 percent profit margin and a 15 percent dividend payout ratio. The total asset turnover is 1.6 and the debt-equity ratio is 0.60. What is the sustainable rate of growth?
A. 9.13 percent
B. 9.54 percent
C. 9.89 percent
D. 10.26 percent
E. 10.85 percent
Ans: E. 10.85 percent
Business
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