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Determine a Venture's Sustainable Growth Rate Based on the Following

Question 6

Multiple Choice

Determine a venture's sustainable growth rate based on the following information: sales = $1,000,000; net income = $100,000; common equity at the beginning of the year = $500,000; and the retention rate = 50%.


A) 10%
B) 15%
C) 20%
D) 25%
E) 30%

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