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Leon's Has a Total Asset Turnover of 1

Question 45

Multiple Choice

Leon's has a total asset turnover of 1.46 percent, a profit margin of 8 percent, an equity multiplier of 1.2, and a dividend payout ratio of 32 percent. What is the sustainable growth rate?


A) 10.30 percent
B) 10.53 percent
C) 10.67 percent
D) 10.89 percent
E) 11.01 percent

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