Problem 4-8 Under Armour, Incorporated is an American supplier of sportswear and casual apparel. Following are selected financial data for the company for the period 2009 to 2013. Profit margin (%) Retention ratio (%) Asset turnover (X) Financial leverage (X) Growth rate in sales (%) Year 2009 2010 2011 2012 2013 2009 Sustainable Growth Rate % % % % % 5.6 100.0 1.5 1.6 18.4 2010 6.5 100.0 1.5 1.6 24.5 2011 6.7 100.0 1.5 1.8 38.7 2012 7.1 100.0 1.5 1.7 24.9 2013 7.1 100.0 a. Calculate Under Armour's annual sustainable growth rate for the years 2009 through 2013. Note: Round your answers to 1 decimal place. 1.4 1.8 27.4

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter15: Capital Investment Analysis
Section: Chapter Questions
Problem 15.5.3MBA
icon
Related questions
Question
Problem 4-8
Under Armour, Incorporated is an American supplier of sportswear and casual apparel. Following are selected financial data for the
company for the period 2009 to 2013.
Profit margin (%)
Retention ratio (%)
Asset turnover (X)
Financial leverage (X)
Growth rate in sales (%)
Year
2009
2010
2011
2012
2013
2009
Sustainable Growth Rate
%
%
%
%
%
5.6
100.0
1.5
1.6
18.4
2010
6.5
100.0
1.5
1.6
24.5
2011
6.7
100.0
1.5
1.8
38.7
2012
7.1
100.0
1.5
1.7
24.9
2013
7.1
100.0
a. Calculate Under Armour's annual sustainable growth rate for the years 2009 through 2013.
Note: Round your answers to 1 decimal place.
1.4
1.8
27.4
Transcribed Image Text:Problem 4-8 Under Armour, Incorporated is an American supplier of sportswear and casual apparel. Following are selected financial data for the company for the period 2009 to 2013. Profit margin (%) Retention ratio (%) Asset turnover (X) Financial leverage (X) Growth rate in sales (%) Year 2009 2010 2011 2012 2013 2009 Sustainable Growth Rate % % % % % 5.6 100.0 1.5 1.6 18.4 2010 6.5 100.0 1.5 1.6 24.5 2011 6.7 100.0 1.5 1.8 38.7 2012 7.1 100.0 1.5 1.7 24.9 2013 7.1 100.0 a. Calculate Under Armour's annual sustainable growth rate for the years 2009 through 2013. Note: Round your answers to 1 decimal place. 1.4 1.8 27.4
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Forecasting Financial Statement
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Financial Accounting Intro Concepts Meth/Uses
Financial Accounting Intro Concepts Meth/Uses
Finance
ISBN:
9781285595047
Author:
Weil
Publisher:
Cengage
Entrepreneurial Finance
Entrepreneurial Finance
Finance
ISBN:
9781337635653
Author:
Leach
Publisher:
Cengage
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Financial & Managerial Accounting
Financial & Managerial Accounting
Accounting
ISBN:
9781337119207
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Corporate Fin Focused Approach
Corporate Fin Focused Approach
Finance
ISBN:
9781285660516
Author:
EHRHARDT
Publisher:
Cengage