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:

Muscular Layer

A layer of tissue composed of muscle fibers that can contract, found in various organs and structures in the body.

Blood Volume

The total amount of blood circulating within an organism's vascular system.

Atrium

Chamber; particularly an upper chamber of the heart, lying above a ventricle.

Ventricle

Cavity in an organ, such as a lower chamber of the heart or the ventricles of the brain.