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

question 92

Multiple Choice

DigIt! Corporation has the following financial information: its profit margin is 10%,its total asset turnover is 1.75,its assets to equity ratio is 1.5,and it pays out 35% of its earnings in dividends.What is its sustainable growth rate?

• A) 22.10%
• B) 20.57%
• C) 9.75%
• D) 47.39%

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Definitions:

Incorporators

The people who actually sign the articles of incorporation to start a corporation.

Permission to Incorporate

Official authorization or approval granted to establish a corporation or legal entity.

Corporate Capitalist State

A socioeconomic system where corporate entities and economic elites have significant influence over state policies and governance, often leading to a fusion of corporate and state power.

Faith and Trust

The belief in the reliability, truth, or strength of someone or something without requiring proof.