CN Railways Is North America's Fifth Largest Railway A)22%
B)3

question 77

Multiple Choice

CN Railways is North America's fifth largest railway. Use the financial information in the table to calculate CN's maximum sustainable growth rate. CN Railway Company
As of December 31, Year 10
$$\begin{array} { | c | c | } \hline \text { ROE } & 8.62 \% \\\hline \text { ROA } & 3.02 \% \\\hline \begin{array} { c } \text { Net Profit } \\\text { Margin }\end{array} & 9.35 \% \\\hline \begin{array} { c } \text { Total Asset } \\\text { Turnover }\end{array} & 0.32 \\\hline \begin{array} { c } \text { Dividend } \\\text { Payout Rate }\end{array} & 30 \% \\\hline\end{array}$$

• A)2.2%
• B)3.1%
• C)6.4%
• D)7.0%
• E)9.4%

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