Assuming the following ratios are constant, what is the sustainable growth rate? Total asset turnover = 2.80

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Assuming the following ratios are constant, what is the sustainable growth rate?

Total asset turnover = 2.80

Profit margin = 5.7%

Equity multiplier = 1.47

Payout ratio = 55%

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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Essentials of Corporate Finance

ISBN: 978-1259277214

9th edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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