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Determine a Firm's "Financial Policy" Multiplier Based on the Following

Question 26

Multiple Choice

Determine a firm's "financial policy" multiplier based on the following information: sustainable growth rate = 20%; net profit margin = 10%; and asset turnover = 2 times.


A) 1.00
B) 1.25
C) 1.50
D) 1.75
E) 2.00

Correct Answer:

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