Hatter Enterprises Has a Return on Sales of 15%, a Total

question 56

Multiple Choice

Hatter Enterprises has a return on sales of 15%, a total asset turnover of 1.2 and an equity multiplier of 2.0. If the company is projecting a dividend payout ratio of 40%, calculate the firms' sustainable growth rate.

• A)15.8%
• B)17.2%
• C)19.4%
• D)21.6%

---

Definitions:

Wholesaling Activities

Business operations involved in the sale of goods in large quantities at low prices, typically to retailers or professional buyers.

Manufacturer's Branches

Outlets or offices established by manufacturers in different locations to improve distribution and provide customer service.

Food Broker

An intermediary who connects food producers with buyers, typically in the retail or food service sectors.

Grocery Manufacturer

A grocery manufacturer refers to a company that produces food products and goods sold in grocery stores and supermarkets.