Assuming the following ratios are constant, what is the sustainable growth rate? Total asset turnover = 2.50

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Assuming the following ratios are constant, what is the sustainable growth rate?
Total asset turnover = 2.50
Profit margin = 6.5%
Equity multiplier = 1.10
Payout ratio = 60%
Asset Turnover
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.
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Corporate Finance Core Principles and Applications

ISBN: 978-0077905200

3rd edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford

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