Assume the following ratios are constant. Total asset turnover Profit margin Equity multiplier Payout ratio || || || || Sustainable growth rate 2.27 5.5% 1.74 What is the sustainable growth rate? Note: Do not round intermediate calculations and enter your answer as a percent 38% %

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Assume the following ratios are constant.
Total asset turnover
Profit margin
Equity multiplier
Payout ratio
=
|| || || ||
Sustainable growth rate
=
=
2.27
5.5%
1.74
What is the sustainable growth rate?
Note: Do not round intermediate calculations and enter your answer as a percent
38%
%
Transcribed Image Text:Assume the following ratios are constant. Total asset turnover Profit margin Equity multiplier Payout ratio = || || || || Sustainable growth rate = = 2.27 5.5% 1.74 What is the sustainable growth rate? Note: Do not round intermediate calculations and enter your answer as a percent 38% %
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