Wilkinson and Daughters Has Net Income of $415,400, Total Assets

question 93

Multiple Choice

Wilkinson and Daughters has net income of $415,400, total assets of $2.2 million, and total liabilities of $1.08 million. The company paid $270,000 in dividends. What is the firm's sustainable rate of growth?

• A)9.69%
• B)11.06%
• C)12.98%
• D)13.93%
• E)14.15%

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Definitions:

Variable Factory Overhead

Expenses in a factory operation that vary with production volume, such as utilities or raw materials.

Direct Labor

The wages or salaries paid to workers directly involved in the production of goods or services.