Simply Red, Inc

question 146

Multiple Choice

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%

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Definitions:

Photosynthetic Pigment

Molecules that absorb specific wavelengths of sunlight and use this energy to carry out photosynthesis in plants and algae.

Visible Wavelengths

The portion of the electromagnetic spectrum that is visible to the human eye, ranging approximately from 380 to 750 nanometers.

Experiential Learning

A learning process through which students develop knowledge, skills, and values from direct experiences outside a traditional academic setting.

Probabilities

A branch of mathematics dealing with the likelihood of occurrence of different events.