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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
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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### 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: __ %
Transcribed Image Text:### 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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