What is sustainable growth rate

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Question 1: 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%

Reference no: EM132497085

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