Asked by
alana fields
on Dec 09, 2024
Verified
Aisle's Markets has a 7% profit margin and a 60 percent dividend payout ratio. The total asset turnover is 1.35 and the debt-equity ratio is.60. What is the sustainable rate of growth?
A) 4.20 %
B) 5.45%
C) 6.44%
D) 6.67 %
E) 7.10%
Debt-Equity Ratio
A ratio indicating the finance strategy of mixing shareholders' equity and debt for asset acquisition.
Profit Margin
A financial performance metric that indicates the percentage of revenue that remains as profit after accounting for costs and expenses.
Sustainable Rate Of Growth
The maximum rate at which a company can grow its sales and earnings without increasing its financial leverage or debt.
- Achieve comprehension of the essential elements of internal and sustainable growth rates.
- Calculate and interpret profit margin, total asset turnover, and debt-equity ratios.
Verified Answer
RM
Learning Objectives
- Achieve comprehension of the essential elements of internal and sustainable growth rates.
- Calculate and interpret profit margin, total asset turnover, and debt-equity ratios.