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Accounting

Problem:

Stop and Go has a 5 percent profit margin and a 44 percent dividend payout ratio. The total asset turnover is 1.66 and the debt-equity ratio is .50.

Required:

Question: What is the sustainable rate of growth?

8.47 percent
5.91 percent
6.12 percent
7.49 percent
6.52 percent

Note: Please explain comprehensively and give step by step solution.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91171616

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