assuming the following ratios are constant total assets turnover=2.34% profit margin=6.2% equity multiplier=1.81% payout ratio= 31% what is the sustainable growth rate?
ROE=profit margin*Total asset turnover*Equity multiplier
=(2.34*6.2*1.81)=26.25948%
Retention ratio=1-dividend payout ratio
=1-0.31=0.69
Sustainable Growth Rate=(ROE*Retention ratio)/[1-(ROE*Retention
ratio)]
=(0.2625948*0.69)/[1-(0.2625948*0.69)]
which is equal to
=22.13%(Approx).
assuming the following ratios are constant total assets turnover=2.34% profit margin=6.2% equity multiplier=1.81% payout ratio= 31%...
Assume the following ratios are constant. Total asset turnover Profit margin Equity multiplier Payout ratio 2.34 6.2% 1.81 3192 What is the sustainable growth rate? (Do not round Intermediate calculations and enter your answer as a percentre Sustainable growth rate
Assume the following ratios are constant. Total asset turnover = 2.34 Profit margin = 6.2 % Equity multiplier = 1.81 Payout ratio = 31 % What is the ROE? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) ROE % What is the sustainable growth rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Sustainable growth rate %
The
answer is not 18.12
Assume the following ratios are constant. Total asset turnover Profit margin Equity multiplier Payout ratio 2.34 6.2% 1.81 31% What is the sustainable growth rate? (Do not round intermediate calculatic Sustainable growth rate 18.12%
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