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NEW QUESTION: 1
Given that the expected dividend payout ratio is 0.34, the expected net profit margin is 0.16, the expected total asset turnover is 0.94, the expected return on capital is 0.24, and the expected financial leverage multiplier is 1.13, what is the expected growth rate of the firm?
A. 6%
B. Not enough information
C. 11%
D. 19%
E. 13%
F. 4%
Answer: C
Explanation:
Explanation/Reference:
Explanation:
The expected growth rate of the firm is equal to the expected retention rate multiplied by the expected return on equity. The return on equity is equal to the expected net profit margin multiplied by theexpected total asset turnover multiplied by the expected financial leverage multiplier (0.16 x 0.94 x 1.13 = 0.17). The expected retention rate is equal to 1 minus the expected dividend payout ratio (1 - 0.34 = 0.66). In this question, the expected growth rate is equal to 0.66 x 0.17 = 0.11 = 11%

NEW QUESTION: 2

A: Option

B: Option

C: Option

D: Option

E: Option

A. Option C
B. Option E
C. Option B
D. Option D
E. Option A
Answer: C

NEW QUESTION: 3
Which of the following is NOT an example of a perimeter pathway?
A. Multi channel raceways
B. Under carpet cabling
C. Raceways integrated within walls
D. Furniture pathways
E. Surface raceways
Answer: D