# Question: Based on the following information calculate the sustainable growth rate

Based on the following information, calculate the sustainable growth rate for Kaleb’s Kickboxing:

Profit margin = 7.1%

Capital intensity ratio = .75

Debt–equity ratio = .60

Net income = $48,000

Dividends = $13,000

Profit margin = 7.1%

Capital intensity ratio = .75

Debt–equity ratio = .60

Net income = $48,000

Dividends = $13,000

**View Solution:**## Answer to relevant Questions

Assuming the following ratios are constant, what is the sustainable growth rate?Total asset turnover = 2.70Profit margin = 6.5%Equity multiplier = 1.2Payout ratio = 35%Based on the following information, calculate the sustainable growth rate for Clapton Guitars, Inc.:Profit margin = 5.3%Total asset turnover = 1.60Total debt ratio = 0.45Payout ratio = 30%Seether, Inc., wishes to maintain a growth rate of 12 percent per year and a debt-equity ratio of .40. Profit margin is 5.8 percent, and the ratio of total assets to sales is constant at 1.55. Is this growth rate possible? ...In the previous problem, assume the equity increases by 1,250 solaris due to retained earnings. If the exchange rate at the end of the year is 1.54 solaris per dollar, what does the balance sheet look like?A project that provides annual cash flows of $17,300 for nine years costs $79,000 today. Is this a good project if the required return is 8 percent? What if it’s 20 percent? At what discount rate would you be indifferent ...Post your question