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Which of the Following Is the Correct Formula for Calculating

Question 11

Multiple Choice

Which of the following is the correct formula for calculating sustainable growth rate?


A) Sustainable growth rate = Return on sales × Return on equity
B) Sustainable growth rate = Retention ratio × Return on equity
C) Sustainable growth rate = Retention ratio × Return on assets
D) Sustainable growth rate = Return on sales × Return on assets

Correct Answer:

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