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    Fundamentals of Corporate Finance Study Set 22
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    Exam 4: Long-Term Financial Planning and Growth
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    Simply Red, Inc
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Simply Red, Inc

Question 146

Question 146

Multiple Choice

Simply Red, Inc. has a return on equity of 14%, a dividend payout ratio of 20%, an equity multiplier of 1.4, and a profit margin of 1.2%. What is the sustainable growth rate?


A) 2.0%
B) 2.9%
C) 5.3%
D) 8.7%
E) 12.6%

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