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The Green Giant has a 5 percent profit margin and a 64 percent dividend payout ratio. The total asset turnover is 1.1 and the equity

The Green Giant has a 5 percent profit margin and a 64 percent dividend payout ratio. The total asset turnover is 1.1 and the equity multiplier is 1.6. What is the sustainable rate of growth?

Multiple Choice

  • 3.27 percent

  • 1.76 percent

  • 22.53 percent

  • 5.23 percent

  • 8.80 percent

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