Robotics Desires a Sustainable Growth Rate of 12

question 39

Multiple Choice

Robotics desires a sustainable growth rate of 12.7 percent while maintaining a constant dividend payout ratio of 25 percent and a profit margin of 12 percent. The company has a capital intensity ratio of .95. What equity multiplier is required to achieve the company's desired rate of growth?

• A) 0.84
• B) 0.98
• C) 1.02
• D) 1.19
• E) 1.11

---

Definitions:

Electronic Funds Transfers

The transfer of money between accounts by electronic means rather than the use of cash or paper documents.

Float Time

The period between when a check is deposited into a bank account and the time the funds are available for use.

Substitute Check

A digital reproduction of an original paper check that is legally considered the same as the original for processing payments.

Collection Process

The steps taken by creditors to collect debts owed to them by debtors, which may include notifications, negotiation, and legal action.