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Question
Komatsu has a 4.5 percent profit margin and a 15 percent dividend payout ratio. The asset turnover ratio is 1.6 and the assets-to-equity ratio (using beginning-of-period equity) is 1.77. What is the sustainable rate of growth?
A. 1.91 percent
B. 6.12 percent
C. 10.83 percent
D. 11.26 percent
E. 12.74 percent
F. None of the above.
Answer
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Related questions
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