Assuming the following ratios are constant, what is the sustainable growth rate? Total asset turnover = 2.85

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

Profit margin = 5.9%

Equity multiplier = 1.70

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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Corporate Finance

ISBN: 978-0077861759

11th edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan

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Question Posted: Jun 22, 2017 09:48 AM

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Assuming the following ratios are constant, what is the sustainable growth rate? Total asset turnover = 2.85

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