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Creative Costumes Inc. has a return on equity of 14%, a dividend payout ratio of 20%, an equity multiplier of 1.4, and a profit margin

Creative Costumes Inc. has a return on equity of 14%, a dividend payout ratio of 20%, an equity multiplier of 1.4, and a profit margin of 1.2%. What is the sustainable growth rate?

Multiple Choice

  • 12.6%

  • 5.3%

  • 8.7%

  • 2.9%

  • 2.0%

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