Profit margin= 9.2% Capital intensity ratio= .53 Debt-equity ratio= .68 Net income= $103,000 Dividends= $52,000 Based on the above information, calculate the sustainable growth rate for Northern lights co. Sustainable growth rate ____%
Profit margin= 9.2% Capital intensity ratio= .53 Debt-equity ratio= .68 Net income= $103,000 Dividends= $52,000 Based on the above information, calculate the sustainable growth rate for Northern lights co. Sustainable growth rate ____%
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
Problem 1PS
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Profit margin= 9.2%
Capital intensity ratio= .53
Debt-equity ratio= .68
Net income= $103,000
Dividends= $52,000
Based on the above information, calculate the sustainable growth rate for Northern lights co.
Sustainable growth rate ____%
Expert Solution
Step 1
Performance of a firm can be measure in different ways. Rate of sustainable growth is one of them and very important factor. It shows who much firm can grow with same capital structure.
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