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Stop and Go has a 6 percent profit margin and a 45 percent dividend payout ratio. The total asset turnover is 1.75 and the debt-equity

Stop and Go has a 6 percent profit margin and a 45 percent dividend payout ratio. The total asset turnover is 1.75 and the debt-equity ratio is .60. What is the sustainable rate of growth?

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  • 7.43 percent

  • 8.46 percent

  • 10.18 percent

  • 11.90 percent

  • 6.23 percent

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