A company reports the following for the prior year:

$$6$ million in sales

$$2$ million in total assets

$$300,000$ in net income

$$50,000$ in accounts payable

$$24,000$ in accounts receivables

$$800,000$ in equity $($at the beginning of this prior year$)$

What is the maximum sustainable growth rate based on the relevant inputs from above?

Answer rating: 100% (QA)

The maximum sustainable growth rate MSG can be calculated using the follow... View the full answer