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A firm has net income of $250,000 on sales of $4,250,000. Its assets total $2,500,000; the equity at the beginning of the year was $1,900,000
A firm has net income of $250,000 on sales of $4,250,000. Its assets total $2,500,000; the equity at the beginning of the year was $1,900,000 and dividends paid were $100,000. What is the sustainable growth rate?
A)6.89%
B)9.20%
C)5.75%
D)7.90%
E)none of the above
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