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Problems Under Armour, Inc. is an American supplier of sportswear and casual apparel. Following are selected financial data for the company for the period 2009-2013. 2012 2009 5.5 100.0 2010 6.4 2011 6.6 7.0 Profit margin (96) Retention ratio (%) Asset turnover (X) 100.0 1.6 1.7 24.2 100.0 1.6 19 100.0 1.6 Financial leverage (X) 1.7 Growth rate in sales (%) 18.1 Source: Data from Under Armour 2009-2013 annual reports 38.4 1.6 1.8 24.6 2013 7.0 100.0 1.5 19 27.1 a. Calculate Under Armour's annual sustainable growth rate for the years 2009 through 2013. b. Did Under Armour face a growth management challenge during this period? Please explain briefly. c. How did Under Armour cope with this challenge? d. Calculate Under Armour's sustainable growth rate in 2013 assuming a profit margin of 8.0%. Calculate the sustainable growth rate in 2013 assuming a financial leverage of 2.40 times. Calculate the sustainable growth rate in 2013 assuming both of these changes occur. Answers Calculations, if necessary

Problems Under Armour, Inc. is an American supplier of sportswear and casual apparel. Following are selected financial data for the company for the period 2009-2013. 2012 2009 5.5 100.0 2010 6.4 2011 6.6 7.0 Profit margin (96) Retention ratio (%) Asset turnover (X) 100.0 1.6 1.7 24.2 100.0 1.6 19 100.0 1.6 Financial leverage (X) 1.7 Growth rate in sales (%) 18.1 Source: Data from Under Armour 2009-2013 annual reports 38.4 1.6 1.8 24.6 2013 7.0 100.0 1.5 19 27.1 a. Calculate Under Armour's annual sustainable growth rate for the years 2009 through 2013. b. Did Under Armour face a growth management challenge during this period? Please explain briefly. c. How did Under Armour cope with this challenge? d. Calculate Under Armour's sustainable growth rate in 2013 assuming a profit margin of 8.0%. Calculate the sustainable growth rate in 2013 assuming a financial leverage of 2.40 times. Calculate the sustainable growth rate in 2013 assuming both of these changes occur. Answers Calculations, if necessary

Essentials Of Investments
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
Section: Chapter Questions
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Problems Under Armour, Inc. is an American supplier of sportswear and casual apparel. Following are selected financial data for the company for the period 2009-2013. 2010 2011 2012 2009 5.5 100.0 6.6 7.0 100.0 1.6 1.9 Profit margin (%) Retention ratio (%) Asset turnover (X) 1.6 1.7 6.4 100.0 1.6 1.7 24.2 100.0 1.6 Financial leverage (X) Growth rate in sales (%) 18.1 38.4 Source: Data from Under Armour 2009-2013 annual reports 1.8 24.6 2013 7.0 100.0 1.5 1.9 27.1 a. Calculate Under Armour's annual sustainable growth rate for the years 2009 through 2013. b. Did Under Armour face a growth management challenge during this period? Please explain briefly. c. How did Under Armour cope with this challenge? d. Calculate Under Armour's sustainable growth rate in 2013 assuming a profit margin of 8.0%. Calculate the sustainable growth rate in 2013 assuming a financial leverage of 2.40 times. Calculate the sustainable growth rate in 2013 assuming both of these changes occur. Answers Calculations, if necessary
Transcribed Image Text:Problems Under Armour, Inc. is an American supplier of sportswear and casual apparel. Following are selected financial data for the company for the period 2009-2013. 2010 2011 2012 2009 5.5 100.0 6.6 7.0 100.0 1.6 1.9 Profit margin (%) Retention ratio (%) Asset turnover (X) 1.6 1.7 6.4 100.0 1.6 1.7 24.2 100.0 1.6 Financial leverage (X) Growth rate in sales (%) 18.1 38.4 Source: Data from Under Armour 2009-2013 annual reports 1.8 24.6 2013 7.0 100.0 1.5 1.9 27.1 a. Calculate Under Armour's annual sustainable growth rate for the years 2009 through 2013. b. Did Under Armour face a growth management challenge during this period? Please explain briefly. c. How did Under Armour cope with this challenge? d. Calculate Under Armour's sustainable growth rate in 2013 assuming a profit margin of 8.0%. Calculate the sustainable growth rate in 2013 assuming a financial leverage of 2.40 times. Calculate the sustainable growth rate in 2013 assuming both of these changes occur. Answers Calculations, if necessary
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