Assuming the following ratios are constant, what is the sustainable growth rate? Total asset turnover = 2.70

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Assuming the following ratios are constant, what is the sustainable growth rate?

Profit margin= 6.5%

Equity multiplier= 1.2

Payout ratio= 35%

Asset Turnover
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.

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Fundamentals of corporate finance

ISBN: 978-0078034633

10th edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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Question Posted: Mar 13, 2014 07:57 AM

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Assuming the following ratios are constant, what is the sustainable growth rate? Total asset turnover = 2.70

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Fundamentals of corporate finance

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