Three companies have the following results during the recent period.

K L M

Net profit margin $0\mathrm{.}040\mathrm{.}060\mathrm{.}10$

Total asset turnover $2\mathrm{.}202\mathrm{.}001\mathrm{.}40$

Total assets$/$equity $2\mathrm{.}402\mathrm{.}201\mathrm{.}50$

Required

Derive for each company the return on equity.

B$.$ Given the following earnings and dividends, compute the sustainable growth rate for each

firm.

K L M

Earnings per share $2\mathrm{.}753\mathrm{.}004\mathrm{.}50$

Dividends per share $1\mathrm{.}251\mathrm{.}001\mathrm{.}00$