Beaver Industries has a total asset turnover rate of 1.8, an equitymultiplier of 1.2, a profit margin of 7 percent, a retention ratioof .6, and total assets of $300,000. What is the sustainable growthrate? (Hint: Watch your decimal places and order of operations)

a. 6.44 percent
b. 9.98 percent
c. 11.09 percent
d. 12.47 percent
e. 19.95 percent

A firm has a return on equity of 14 percent, a return on assets of9.5 percent, and a 30 percent dividend payout ratio. What is thesustainable growth rate?

a. 2.93 percent
b. 4.38 percent
c. 7.12 percent
d. 9.58 percent
e. 10.86percent