Determine a Firm's "Financial Policy" Multiplier Based on the Following

question 26

Multiple Choice

Determine a firm's "financial policy" multiplier based on the following information: sustainable growth rate = 20%; net profit margin = 10%; and asset turnover = 2 times.

• A) 1.00
• B) 1.25
• C) 1.50
• D) 1.75
• E) 2.00

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