Which of the following ratios do note influence a firms sustainable growth rate? total asset turnover...

Question

Question

Which of the following ratios do note influence a firms sustainable growth rate?

total asset turnover

profit margin

Price to earnings ratio

or retention rate?

business finance

Answer 1

Answer #1

sustainable growth rate=(ROE*Retention ratio)/[1-(ROE*Retention ratio)]

where ROE=Profit margin*Total asset turnover*Equity multiplier

and

Retention ratio=1-payout ratio

Hence the correct option is Price to earnings ratio.

Answer 2

Similar Homework Help Questions

7. Sustainable Growth Assuming the following ratios are constant, what is the sustainable growth rate Total...

7. Sustainable Growth Assuming the following ratios are constant, what is the sustainable growth rate Total asset turnover =3.20 Profit marge n =7,4% Equity multiplier 1.4 Payout ratio =60%
7. Sustainable Growth Assuming the following ratios are constant, what is the sustainable growth rate Total...

7. Sustainable Growth Assuming the following ratios are constant, what is the sustainable growth rate Total asset turnover =3.20 Profit marge n =7,4% Equity multiplier 1.4 Payout ratio =60%
The answer is not 18.12 Assume the following ratios are constant. Total asset turnover Profit margin...

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%

Assume the following ratios are constant. Total asset turnover = 2.24 Profit margin = 5.2 %...

Assume the following ratios are constant. Total asset turnover = 2.24 Profit margin = 5.2 % Equity multiplier = 1.71 Payout ratio = 49 % What is the sustainable growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Sustainable growth rate %
Assume the following ratios are constant. Total asset turnover Profit margin Equity multiplier Payout ratio 2.34...

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 3 Profit margin 5.9 % Equity multiplier...

Assume the following ratios are constant: Total asset turnover 3 Profit margin 5.9 % Equity multiplier 1.5 Payout ratio 35 % 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 %

Assume the following ratios are constant: Total asset turnover 2.70 Profit margin 6.7 % Equity multiplier...

Assume the following ratios are constant: Total asset turnover 2.70 Profit margin 6.7 % Equity multiplier 2.00 Payout ratio 22 % What is the sustainable growth rate?
Assume the following ratios are constant: Total asset turnover 2.5 Profit margin 6.5% Equity multiplier 1.60...

Assume the following ratios are constant: Total asset turnover 2.5 Profit margin 6.5% Equity multiplier 1.60 Payout ratio 20% What is the sustainable growth rate?
Assume the following ratios are constant. Total asset turnover = 2.34 Profit margin = 6.2 %...

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 %

myCoyote Homework 2 work 2 Assume the following ratios are constant: Total asset 2.90 turnover Profit...

myCoyote Homework 2 work 2 Assume the following ratios are constant: Total asset 2.90 turnover Profit margin Equity multiplier Payout ratio 5.2% 1.10 35% ok What is the sustainable growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) ces Sustainable growth rate