Deprey, Incorporated, had equity of $220,000 at the beginning of the year. At the end the year, the company had total assets of $375,000. During the year, the company so no new equity. Net income for the year was $46,000 and dividends were $6,800. a. What is the sustainable growth rate for the company? (Do not round intermedia calculations and enter your answer as a percent rounded to 2 decimal places, e. 32.16.) b. What is the sustainable growth rate if you use the formula ROE × b and beginning of period equity? (Do not round intermediate calculations and enter your answer as percent rounded to 2 decimal places, e.g., 32.16.) c. What is the sustainable growth rate if you use end of period equity in this formula? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Sustainable growth rate b. ROE x b (using beginning of period equity) % %
Deprey, Incorporated, had equity of $220,000 at the beginning of the year. At the end the year, the company had total assets of $375,000. During the year, the company so no new equity. Net income for the year was $46,000 and dividends were $6,800. a. What is the sustainable growth rate for the company? (Do not round intermedia calculations and enter your answer as a percent rounded to 2 decimal places, e. 32.16.) b. What is the sustainable growth rate if you use the formula ROE × b and beginning of period equity? (Do not round intermediate calculations and enter your answer as percent rounded to 2 decimal places, e.g., 32.16.) c. What is the sustainable growth rate if you use end of period equity in this formula? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Sustainable growth rate b. ROE x b (using beginning of period equity) % %
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 12P: The Kretovich Company had a quick ratio of 1.4, a current ratio of 3.0, a days’ sales outstanding of...
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![Deprey, Incorporated, had equity of $220,000 at the beginning of the year. At the end of
the year, the company had total assets of $375,000. During the year, the company sold
no new equity. Net income for the year was $46,000 and dividends were $6,800.
a. What is the sustainable growth rate for the company? (Do not round intermediate
calculations and enter your answer as a percent rounded to 2 decimal places, e.g.,
32.16.)
b. What is the sustainable growth rate if you use the formula ROE × b and beginning of
period equity? (Do not round intermediate calculations and enter your answer as a
percent rounded to 2 decimal places, e.g., 32.16.)
c. What is the sustainable growth rate if you use end of period equity in this formula?
(Do not round intermediate calculations and enter your answer as a percent
rounded to 2 decimal places, e.g., 32.16.)
a. Sustainable growth rate
b. ROE x b (using beginning of period equity)
c. ROE x b (using end of period equity)
%
de de de
%
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7298976f-8c5b-43a4-9031-b54a18db4009%2Fac31a4e1-cb0d-45ca-879e-2e8db111f678%2Fuxcwcu_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Deprey, Incorporated, had equity of $220,000 at the beginning of the year. At the end of
the year, the company had total assets of $375,000. During the year, the company sold
no new equity. Net income for the year was $46,000 and dividends were $6,800.
a. What is the sustainable growth rate for the company? (Do not round intermediate
calculations and enter your answer as a percent rounded to 2 decimal places, e.g.,
32.16.)
b. What is the sustainable growth rate if you use the formula ROE × b and beginning of
period equity? (Do not round intermediate calculations and enter your answer as a
percent rounded to 2 decimal places, e.g., 32.16.)
c. What is the sustainable growth rate if you use end of period equity in this formula?
(Do not round intermediate calculations and enter your answer as a percent
rounded to 2 decimal places, e.g., 32.16.)
a. Sustainable growth rate
b. ROE x b (using beginning of period equity)
c. ROE x b (using end of period equity)
%
de de de
%
%
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