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The Green Giant has a 6 percent profit margin and a 32 percent dividend payout ratio. The total asset turnover is 1.4 times and the

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The Green Giant has a 6 percent profit margin and a 32 percent dividend payout ratio. The total asset turnover is 1.4 times and the equity multiplier is 1.5 times. What is the sustainable rate of growth? The most recent financial statements for Bello Co. are shown here: Income Statement Balance Sheet Current Sales $19,100 $11,740 Debt $15,820 assets Costs 12,960 Fixed assets 27,000 Equity 22,920 Taxable $ 6,140 Total $38,740 Total $ 38,740 income Taxes (25%) 1,535 $ 4,605 Net income Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 40 percent dividend payout ratio. What is the sustainable growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

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