Bright Horizons Inc. has a 6% profit margin and a 40% dividend payout ratio. The company has a total asset turnover of 1.2 and an equity multiplier of 1.5. 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
Chapter7: Analysis Of Financial Statements
Section: Chapter Questions
Problem 6P
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What is the sustainable growth rate on these financial accounting question?

Bright Horizons Inc. has a 6% profit margin and a 40% dividend
payout ratio. The company has a total asset turnover of 1.2 and
an equity multiplier of 1.5.
What is the sustainable growth rate?
Transcribed Image Text:Bright Horizons Inc. has a 6% profit margin and a 40% dividend payout ratio. The company has a total asset turnover of 1.2 and an equity multiplier of 1.5. What is the sustainable growth rate?
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