EXLO Company Has Current Sales of $100,000 and Has Projected

question 48

Multiple Choice

EXLO Company has current sales of $100,000 and has projected annual sales growth of 5%,asset growth of 120%,profit margins of 3%,and its dividend policy is to have a dividend payout of 15% per year.Assume there are no spontaneous liabilities.The sustainable growth rate for EXLO is closest to:

• A) 0.13%
• B) 0.38%
• C) 2.17%
• D) 4.25%

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Definitions:

Utility Bill

A monthly fee paid for services such as electricity, water, and gas consumption.

Economic Costs

The total cost of choosing one action over another, including both explicit costs (direct payments) and implicit costs (opportunity costs).

Accounting Costs

Explicit costs involving monetary payment or outlay by an organization or individual for goods or services.

Economic Profit

The difference between the total revenue generated by a business and the total costs, including both explicit and implicit costs.