Dj's has a total asset turnover rate of 1.13, an equity multiplier of 1.46, a profit margin of 5.28 percent, a retention ratio of. 74, and total assets of $138,000. what is the sustainable growth rate? 6.89 percent 7.04 percent 6.98 percent 7.33 percent 7.21 percent

Asset turnover rate = 1.13,

equity multiplier = 1.46

profit margin = 5.28 %

retention ratio =.74

total assets = $138,000.

sustainable growth rate = [ (profit margin x asset turnover rate x equity

multiplier) x retention ratio] / [1 - (profit margin x asset turnover rate x equity

multiplier) x retention ratio) }

=[ (0,0528 x 1.13 x 1.46) x 0.74] / [ (1 - (0,0528 x 1.13 x 1.46)) x 0.74]

= 0.0644 / 0.9355 = 0.0688 = 6.88 prcent.