A firm has net income of $200, total assets of $1,200, and total liabilities of $400 The total asset turnover ratio is 3 What is the sustainable growth rate assuming dividends paid total $60 a) 13 8 percent b) 11 5 percent c) 16 2 percent d) 21 2 percent ...

d 212 percent Dividend payout ratio DividendNet ...

A firm has net income of $200, total assets of $1,200, and total liabilities of $400. The

Question:

A firm has net income of $200, total assets of $1,200, and total liabilities of $400. The total ratio is 3. What is the sustainable growth rate assuming dividends paid total $60?
a) 13.8 percent
b) 11.5 percent
c) 16.2 percent
d) 21.2 percent

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.