Assume the following ratios are constant: Total asset turnover 2.25 Profit margin 5.3% Equity multiplier 1.72 Payout

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Assume the following ratios are constant:

Total asset turnover 2.25

Profit margin 5.3%

Equity multiplier 1.72

Payout ratio 50%

What is the sustainable growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

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Essentials Of Corporate Finance

ISBN: 9780073382463

7th Edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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Posted Date: Feb 28, 2024 12:00 AM

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Assume the following ratios are constant: Total asset turnover 2.25 Profit margin 5.3% Equity multiplier 1.72 Payout

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To calculate the sustainable growth rate we can use the formula Sustaina... View the full answer

Essentials Of Corporate Finance

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