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If a Venture Has a Return on Assets (ROA)of 10

Question 56

Multiple Choice

If a venture has a return on assets (ROA) of 10%, an equity multiplier based on beginning equity of 3.5 times, and a retention rate of 50%, the sustainable growth rate would be:


A) 10.0%
B) 17.5%
C) 20.0%
D) 35.0%

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