Question: Given the following information: profit margin = 10%; sales = $100; retention ratio = 40%; assets = $200; equity multiplier = 2.0. If the firm

Given the following information:

profit margin = 10%;

sales = $100;

retention ratio = 40%;

assets = $200;

equity multiplier = 2.0.

If the firm maintains a constant debt-equity ratio and no new equity is used, what is the maximum sustainable growth rate (SGR)?

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