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Linda has a 4.5 percent profit margin and an 18 percent dividend payout ratio. The total asset turnover is 1.6 and the debt-equity ratio is
Linda has a 4.5 percent profit margin and an 18 percent dividend payout ratio. The total asset turnover is 1.6 and the debt-equity ratio is 0.45. What is the sustainable rate of growth?
| a. | 8.13 percent | |
| b. | 8.54 percent | |
| c. | 9.36 percent | |
| d. | 9.86 percent |
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