Assume the following ratios are constant: • Total asset turnover = 2.80 Profit margin = 6.0% Equity multiplier = 1.50 Payout ratio = 25% What is the sustainable growth rate?
Assume the following ratios are constant: • Total asset turnover = 2.80 Profit margin = 6.0% Equity multiplier = 1.50 Payout ratio = 25% What is the sustainable growth rate?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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What is the sustainable growth rate?
Transcribed Image Text:Assume the following ratios are constant:
•
Total asset turnover = 2.80
Profit margin = 6.0%
Equity multiplier
=
1.50
Payout ratio = 25%
What is the sustainable growth rate?
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