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%
Correct Answer:

Verified
Correct Answer:
Verified
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