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Big B Corp. has a 6 percent profit margin and a 65 percent dividend payout...

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Finance

Big B Corp. has a 6 percent profit margin and a 65 percent dividend payout ratio. The total asset turnover is 1.5 times and the equity multiplier is 1.6 times. What is the sustainable rate of growth? Hint: SGR= (ROE*B)/1-(ROE*B)

A) 26.00%

B) 2.40%

C) 14.40%

D) 5.31%

E) 8.50%

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