Answered: Assume the following ratios are…

Assume the following ratios are constant. Total asset turnover = 2.16 Profit margin = 4.4 % Equity multiplier = 1.63 Payout ratio = 41 % What is the sustainable growth rate

Fundamentals of Financial Management, Concise Edition (MindTap Course List)

9th Edition

ISBN:9781305635937

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter4: Analysis Of Financial Statements

Section: Chapter Questions

Problem 7DQ: From the Google Finance site, use the DuPont analysis to determine the total assets turnover ratio...

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Question

Assume the following ratios are constant.


Total asset turnover	=	2.16
Profit margin	=	4.4	%
Equity multiplier	=	1.63
Payout ratio	=	41	%

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.)

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