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Profit margin is 10%, asset turnover is 1.0, earnings per share are $2.00 and dividends per share are $2.50. Which of the following statements is

Profit margin is 10%, asset turnover is 1.0, earnings per share are $2.00 and dividends per share are $2.50. Which of the following statements is correct?

1. The return on assets is greater than the return on equity

2. The return on equity is greater than the sustainable growth rate

3. The sustainable growth rate is greater than the return on assets

4. The stock is over valued

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