Profit margin Capital intensity ratio Debt-equity ratio Net income Dividends ☐☐☐ 8.6% .47 .62 $ 97,000 $ 43,000 Based on the above information, calculate the sustainable growth rate for Kayla's Heavy Equipment. Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter3: Analysis Of Financial Statements
Section: Chapter Questions
Problem 15SP
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Based on the above information, calculate the sustainable growth rate for Kayla's Heavy Equipment.

Profit margin
Capital intensity ratio
Debt-equity ratio
Net income
Dividends
=
8.6%
.47
.62
$ 97,000
$ 43,000
Based on the above information, calculate the sustainable growth rate for Kayla's Heavy Equipment.
Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
Transcribed Image Text:Profit margin Capital intensity ratio Debt-equity ratio Net income Dividends = 8.6% .47 .62 $ 97,000 $ 43,000 Based on the above information, calculate the sustainable growth rate for Kayla's Heavy Equipment. Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
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