You are given the following information on Kayla's Heavy Equipment: Profit margin Capital intensity ratio Debt-equity ratio Net income Dividends Calculate the sustainable growth rate. 6.8% .95 1.45 $ 84,000 $ 26,000 Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Sustainable growth rate %

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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You are given the following information on Kayla's Heavy Equipment:
Profit margin
Capital intensity ratio
Debt-equity ratio
Net income
Dividends
Calculate the sustainable growth rate.
6.8%
.95
1.45
$ 84,000
$ 26,000
Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
Sustainable growth rate
%
Transcribed Image Text:You are given the following information on Kayla's Heavy Equipment: Profit margin Capital intensity ratio Debt-equity ratio Net income Dividends Calculate the sustainable growth rate. 6.8% .95 1.45 $ 84,000 $ 26,000 Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Sustainable growth rate %
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