10. An analyst gathered the following information for Total Asset Turnover: 0.90 Net Income $1,000,000 Net Profit Margin: 14% Equity Multiplier (TA/OE): 1.5 Z's sustainable growth rate is closest to Return on Assets: 12.6% Div's Declared: $300,000 Times Interest Earned: 1.2

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter15: Capital Investment Analysis
Section: Chapter Questions
Problem 15.5.3MBA
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d
Question 10
b. 18.9%
c. 19.76%
d. 21.50%
10. An analyst gathered the following information for XYZ Inc.:
Total Asset Turnover: 0.90
Net Income $1,000,000
Net Profit Margin: 14%
Equity Multiplier (TA/OE): 1.5
XYZ's sustainable growth rate is closest to
a. 13.23%
Return on Assets: 12.6%
Div's Declared: $300,000
Times Interest Earned: 1.2
Transcribed Image Text:d Question 10 b. 18.9% c. 19.76% d. 21.50% 10. An analyst gathered the following information for XYZ Inc.: Total Asset Turnover: 0.90 Net Income $1,000,000 Net Profit Margin: 14% Equity Multiplier (TA/OE): 1.5 XYZ's sustainable growth rate is closest to a. 13.23% Return on Assets: 12.6% Div's Declared: $300,000 Times Interest Earned: 1.2
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