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 = 7.8%

Equity multiplier = 1.80

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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Related Book For  answer-question

Fundamentals of corporate finance

ISBN: 978-0073382395

9th edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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