Given the following information, compute the implied dividend growth rate.

Given the following information, compute the implied dividend growth rate.



Profit margin = 10.0%

Total asset turnover = 2.0 times

Financial leverage = 1.5 times

Dividend payout ratio = 40.0%



A) 4.5%.


B) 18.0%.


C) 12.0%.



Answer: B


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