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Question
A firm has a retention ratio of 40 percent and a sustainable growth rate of 6.2 percent. The asset turnover ratio is 0.85 and the assets-to-equity ratio (using beginning-of-period equity) is 1.80. What is the profit margin?
A. 3.79 percent
B. 5.69 percent
C. 6.75 percent
D. 10.13 percent
E. 18.24 percent
Answer
This answer is hidden. It contains 98 characters.
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