Stop and Go Has a 4

question 98

Multiple Choice

Stop and Go has a 4.5 percent profit margin and a 15 percent dividend payout ratio. The total asset turnover is 1.6 and the debt-equity ratio is 0.60. What is the sustainable rate of growth?

• A)9.13 percent
• B)9.54 percent
• C)9.89 percent
• D)10.26 percent
• E)10.85 percent

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Definitions:

Heat of Combustion

The amount of heat released when a substance completely burns in oxygen, a measure of the energy content of a fuel.

Cycloalkanes

Saturated, ring-shaped hydrocarbons with the general formula CnH2n, where n is the number of carbon atoms in the ring.

Trans-1,4-Dipropylcyclohexane

A chemical compound featuring a cyclohexane ring with propyl groups attached at the 1 and 4 positions in a trans configuration.

Stable Conformation

The spatial arrangement of atoms in a molecule that is energetically favorable and has lower internal strain.