A company has a retention rate of 50%, sales of $25,000, beginning equity of $50,000 and profit
Question:
A company has a retention rate of 50%, sales of $25,000, beginning equity of $50,000 and profit margins of 10%, an asset turnover ratio of .75 and debt of $10,000. What is its sustainable growth rate?
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 81% (11 reviews)
Meaning Sustainable growth rate is the maximum growth rate that can be achieved using both internal ...View the full answer
Answered By
Ali Khawaja
my expertise are as follows: financial accounting : - journal entries - financial statements including balance sheet, profit & loss account, cash flow statement & statement of changes in equity -consolidated statement of financial position. -ratio analysis -depreciation methods -accounting concepts -understanding and application of all international financial reporting standards (ifrs) -international accounting standards (ias) -etc business analysis : -business strategy -strategic choices -business processes -e-business -e-marketing -project management -finance -hrm financial management : -project appraisal -capital budgeting -net present value (npv) -internal rate of return (irr) -net present value(npv) -payback period -strategic position -strategic choices -information technology -project management -finance -human resource management auditing: -internal audit -external audit -substantive procedures -analytic procedures -designing and assessment of internal controls -developing the flow charts & data flow diagrams -audit reports -engagement letter -materiality economics: -micro -macro -game theory -econometric -mathematical application in economics -empirical macroeconomics -international trade -international political economy -monetary theory and policy -public economics ,business law, and all regarding commerce
4.00+
1+ Reviews
10+ Question Solved
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Question Posted:
Students also viewed these Accounting questions
-
Profit margins and turnover ratios vary from one industry to another. What differences would you expect to find between a grocery chain such as Safeway and a steel company? Think particularly about...
-
Profit margins and turnover ratios vary from one industry to another. What differences would you expect to find between the turnover ratios, profit margins, and DuPont equations for a grocery chain...
-
Profit margins and turnover ratios vary from one industry to another. What differences would you expect to find between the turnover ratios, profit margins, and DuPont equations for a grocery chain...
-
Write the surface x 2 + y 2 z 2 = 2 (x + y) as an equation r = (, z) in cylindrical coordinates.
-
How would you synthesize each of the following compounds from an acid chloride? (a) (b) ,-- NO, (CH),C-o-C-CH, C-o-c C CH2 C-O-C(CH)
-
What the Structural adjustment loans require from countries ?
-
A study in one state compared the traffic fatality rates (number of fatalities per miles driven) on highways with 55, 65, and 75 miles per hour speed limits. They found that highways with a 75 mph...
-
Bart and Elizabeth Forrest, both age 47, are married and have no dependents. They have asked you to advise them whether they should file jointly or separately in 2016. They present you with the...
-
A ticket is drawn from a bag of 9 tickets labelled 1 to 9 and a 10 -sided die with the numbers 1 to 10 on its faces is rolled. How many different ways can you draw a number that is not divisible by 5...
-
1. Who are the followers at Bluebird Care? 2. In what way is followership related to the mission of the agency? Do Robin and her managers recognize the importance of followership? Explain. 3. Using...
-
The Lo Tech Co. just issued a dividend of $2.20 per share on its common stock. The company is expected to maintain a constant 6 percent growth rate in its dividends indefinitely. If the stock sells...
-
Should a company use debt or equity to finance its operations? Explain. (Capital structure)
-
Describe a disclosure checklist. What is its purpose
-
What topics that interest you would you use CPM Theory to investigate? Generate some questions that you could research using CPM.
-
Consider some of the organizations to which you belong. Identify the cultural performances that you have either observed or shared. How could you use these performances in your work?
-
Do you agree that Agenda Setting is a limited effects model? As the chapter notes the theorys originator, Maxwell McCombs, has alternated in how he has framed the type of effects claimed by Agenda...
-
Within the past 10 years there has been an increase in the number of studies using CPM, which seems to indicate its standing the test of time. Do you agree that CPM will stand the test of time? Why...
-
Provide an example of how you could use reframing to resolve a dialectical tension.
-
Solve for the proportionality constant, R, in the ideal gas law.
-
For what reason might an exporter use standard international trade documentation (letter of credit, draft, order bill of lading) on an intrafirm export to its parent or sister subsidiary?
-
Consider the examples of research studies presented from the scientific, interpretive, and critical paradigmatic perspectives. Is there one approach that is most interesting to you? Is there one that...
-
Variable and absorption costing and breakeven points Tammy Cat Tree Co (TCTC) builds luxury cat trees and sells them through the Internet to cat owners who want to provide their cats with a more...
-
Variable costing versus absorption costing. The Mavis Company uses an absorption-costing system based on standard costs. Total variable manufacturing cost, including direct material cost, is $3 per...
-
Variable costing and absorption costing the All-Fixed Company. It is the end of 2009. The All-Fixed Company began operations in January 2008. The company is so named because it has no variable costs....
-
How in a perfect world would muni bonds pay interest? Explain the correlation between the greater premium and high tax states. Will you invest in Muni bonds based on the new findings? Please discuss.
-
CityLight Co. is struggling financially. Prior to debt renegotiations, the company's total assets were $11 million and total liabilities were $18 million. The company has negotiated with the debtors...
-
How might technology change in the future? How will technology make our lives better in the next ten years? What kinds of technology are you most excited about? What do you think will be the next...
Study smarter with the SolutionInn App