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A Firm Has Net Income of $320,000 on Sales of $3,200,000

Question 38

Multiple Choice

A firm has net income of $320,000 on sales of $3,200,000. Its assets total $2,000,000; the equity at the beginning of the year was $1,600,000 and dividends paid were $80,000. What is the sustainable growth rate?


A) 5%
B) 15%
C) 6.25%
D) 4.69%
E) none of the above

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