Compute sustainable rate of growth

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Compute sustainable rate of growth

The Green Giant has a 5% profit margin and a 40% dividend payout ratio. The total asset turnover is 1.40 and the equity multiplier is 1.50. What is the sustainable rate of growth?

A. 6.30%

B. 6.53%

C. 6.72%

D. 6.80%

E. 6.83%

Reference no: EM1317428

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