A Firm Has a Payout Ratio of 40 Percent and a Sustainable

question 7

Multiple Choice

A firm has a payout ratio of 40 percent and a sustainable growth rate of 8.5%. The capital intensity ratio is 1.1 and the debt-equity ratio is.5. What is the profit margin?

• A) 5.4%
• B) 7.9%
• C) 9.6 %
• D) 11.9%
• E) 14.4%

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Definitions:

Cultural Attributes

Characteristics or features that define and distinguish one culture from another, including language, customs, beliefs, and practices.

Geographical Location

A specific position or point on the Earth's surface defined by coordinates or descriptive measures.

Informal Economy

The informal economy comprises economic activities that are not regulated by the government and are typically not included in a country's gross national product or gross domestic product.