Based on the following information, calculate the sustainable growth rate for Lesners Kickboxing: Profit margin = 8.2%

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

Profit margin = 8.2%

Capital intensity ratio = .75

Debt-equity ratio = .40

Net income = $43,000

Dividends = $12,000

What is the ROE here?

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Related Book For answer-question

Fundamentals of Corporate Finance

ISBN: 978-0071051606

8th Canadian Edition

Authors: Stephen A. Ross, Randolph W. Westerfield

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Question Posted: Jun 24, 2019 09:17 AM

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Based on the following information, calculate the sustainable growth rate for Lesners Kickboxing: Profit margin = 8.2%

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We first must calculate the ROE using the DuPont ratio to cal...View the full answer

Fundamentals of Corporate Finance

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