Problem:
If the net profit margin is 5%, asset turnover is 2.00, the equity multiplier (also called financial leverage ratio) is 4.00, and the dividend payout ratio is 60%,
Required:
Question: What is the theoretical sustainable growth rate?
a) 40.0%
b) 20.0%
c) 10.0%
d) 24.0%
e) 15.0%
f) 16.0%
Note: Please show guided help with steps and answer.