### Sustainable Growth Rate Calculation for Kayla’s Heavy Equipment**Provided Information:**- **Profit Margin:** 7.3%- **Capital Intensity Ratio:** 0.95- **Debt-Equity Ratio:** 1.05- **Net Income:** $84,000- **Dividends:** $24,000**Task:**Calculate the sustainable growth rate. (Do not round intermediate calculations and enter your answer as a percentage rounded to 2 decimal places, e.g., 32.16.)**Answer:**Sustainable Growth Rate: __ %

You are given the following information on Kayla's Heavy Equipment: Profit margin Capital intensity ratio Debt-equity ratio 7.3% .95 1.05 2$ 84,000 2$ Net income Dividends 24,000 Calculate the sustainable growth rate. (Do not round intermediate calculations a enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

You are given the following information on Kayla's Heavy Equipment: Profit margin Capital intensity ratio Debt-equity ratio 7.3% .95 1.05 2$ 84,000 2$ Net income Dividends 24,000 Calculate the sustainable growth rate. (Do not round intermediate calculations a 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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Question

### Sustainable Growth Rate Calculation for Kayla’s Heavy Equipment

**Provided Information:**

- **Profit Margin:** 7.3%
- **Capital Intensity Ratio:** 0.95
- **Debt-Equity Ratio:** 1.05
- **Net Income:** $84,000
- **Dividends:** $24,000

**Task:**
Calculate the sustainable growth rate. (Do not round intermediate calculations and enter your answer as a percentage rounded to 2 decimal places, e.g., 32.16.)

**Answer:**
Sustainable Growth Rate: __ %

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