Youve collected the following information about Fox, Inc.: What is the sustainable growth rate for the company?
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You’ve collected the following information about Fox, Inc.:What is the sustainable growth rate for the company? If it does grow at this rate, how much new borrowing will take place in the coming year, assuming a constant debt-equity ratio? What growth rate could be supported with no outside financing at all?
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Sales = $245,000 Net income = $17,000 Dividends = $5,800 Total debt = $53,000
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To find the sustainable growth rate we need the retention ratio and the return on equity The payout ...View the full answer
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Related Book For
Essentials Of Corporate Finance
ISBN: 9780073382463
7th Edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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