For the Prior Year,Billy Bob's Dress Shop Had a Net

question 88

Multiple Choice

For the prior year,Billy Bob's Dress Shop had a net profit margin of 5% based upon a sales level of $100,000.It's total assets are $1,000,000 while its total equity is $300,000.If Billy Bob pays out 50% of its net income in dividends,then what is the firm's sustainable growth rate going forward?

• A) .84%
• B) 8.00%
• C) 8.40%
• D) none of the above

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