Assume the following ratios are constant for Pacific Dynamics Corporation: Total asset turnover = 1.84 Profit margin = 7.2% Equity multiplier 2.15 Payout ratio = 40% a. What is the ROE? b. 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
Chapter8: Basic Stock Valuation
Section: Chapter Questions
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Kindly help me with this General accounting questions not use chart gpt please fast given solution

Assume the following ratios are constant for Pacific Dynamics
Corporation: Total asset turnover = 1.84 Profit margin = 7.2% Equity
multiplier 2.15 Payout ratio = 40%
a. What is the ROE?
b. What is the sustainable growth rate?
Transcribed Image Text:Assume the following ratios are constant for Pacific Dynamics Corporation: Total asset turnover = 1.84 Profit margin = 7.2% Equity multiplier 2.15 Payout ratio = 40% a. What is the ROE? b. What is the sustainable growth rate?
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