Assume the following ratios are constant: . Total asset turnover = 2.40 ⚫ Profit margin = 5.5% . • Equity multiplier = 1.75 Payout ratio = 30% What is the sustainable growth rate?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter9: Corporate Valuation And Financial Planning
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Assume the following ratios are constant:
. Total asset turnover = 2.40
⚫ Profit margin = 5.5%
.
•
Equity multiplier = 1.75
Payout ratio = 30%
What is the sustainable growth rate?
Transcribed Image Text:Assume the following ratios are constant: . Total asset turnover = 2.40 ⚫ Profit margin = 5.5% . • Equity multiplier = 1.75 Payout ratio = 30% What is the sustainable growth rate?
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