(siyjod1. Profit margin is 20% and the dividend payout ratio is 60%. Last year, total assets were RO 15,000 and sales represent50% of total assets. The target debt/equity ratio (D/E) is 0.65.1.1. What is the sustainable growth rate (SGR)? Interpret.1.2. What is the internal growth rate (IGR)? Interpret.

Sales =RO 7,500 Net Income (20%) = 7,500 * 20% = 1,500 Dividend Distributed = 900 Retained Earnings…

Answered: What is the sustainable growth rate…

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What is the sustainable growth rate (SGR)? Interpret. What is the internal growth rate (IGR)? Interpret.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

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ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 13P

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(siyjod
1. Profit margin is 20% and the dividend payout ratio is 60%. Last year, total assets were RO 15,000 and sales represent
50% of total assets. The target debt/equity ratio (D/E) is 0.65.
1.1. What is the sustainable growth rate (SGR)? Interpret.
1.2. What is the internal growth rate (IGR)? Interpret.

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