What is wax music sustainable rate of growth

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1. Wax Music has a 12.50 percent profit margin and a 70 percent dividend payout ratio. The asset turnover ratio is 0.85 and the assets-to-equity ratio (using beginning-of-period equity) is 1.75. What is Wax Music 's sustainable rate of growth?

9.30%.

5.58%.

6.20%.

13.02%.

2. Suppose that you buy a two-year 9% TIPS (Treasury Inflation-Protected Securities) at its face value. What will be your nominal return on the two-year if inflation is 3% in the first year and 6% in the second year?

19.19%.

29.72%.

34.75%.

38.52%.

Reference no: EM132005962

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