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A firm has a sustainable growth rate of 10.83 percent, and an 85 percent retention ratio. The asset turnover ratio is 1.6 and the assets-to-equity

A firm has a sustainable growth rate of 10.83 percent, and an 85 percent retention ratio. The asset turnover ratio is 1.6 and the assets-to-equity ratio (using beginning-of-period equity) is 1.77. What is its profit margin? (Points : 3.5)

25.49%. 4.98%. 24.92%. 4.50%.

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