DigIt! Corporation Has the Following Financial Characteristics: Its Profit Margin

question 76

Multiple Choice

DigIt! Corporation has the following financial characteristics: its profit margin is 10%,its total asset turnover is 1.75,its asset to equity ratio is 1.5 and its sustainable growth rate is 20.6%.What dividend payout ratio is consistent with these values?

• A) 45%
• B) 55%
• C) 65%
• D) 35%

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Definitions:

Personal Assets

Items of economic value owned by an individual, which can include tangible items like property and vehicles or intangible assets.

Proprietorship

A business structure owned by a single individual where there's no legal distinction between the owner and the business entity.

Legal Dissolution

The process of legally dissolving a company, terminating its existence by the law.

New Partner

An individual who joins an existing partnership, contributing capital, and sharing in profits, losses, and liabilities.