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Canvas Savings Association has forecast the following performance ratios for the year ahead. How fast can Canvas allow its assets to grow without reducing its
Canvas Savings Association has forecast the following performance ratios for the year ahead. How fast can Canvas allow its assets to grow without reducing its ratio of equity capital to total assets, assuming its performance holds steady over the period?
Net profit margin 30.0% Asset utilization rate 4.0% Equity multiplier 10.0 Net earnings retention ratio 80.0%
A. 9.6%
B. 9.8%
C. 10.0%
D. 9.2%
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