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QUESTION

Assume the following ratios are constant: Total asset turnover1.9 Profit margin8.6% Equity multiplier1.1 Payout ratio25% What is the sustainable

Assume the following ratios are constant:

   Total asset turnover    1.9  

   Profit margin         8.6%  

   Equity multiplier       1.1  

   Payout ratio          25%

What is the sustainable growth rate? (in %) (round 4 decimal places)

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