Cambria, Inc., had equity of $145,000 at the beginning of the year. At the end of the

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Cambria, Inc., had equity of $145,000 at the beginning of the year. At the end of the year, the company had total assets of $275,000. During the year the company sold no new equity. Net income for the year was $26,000 and dividends were $5,500.

What is the sustainable growth rate for the company?

What is the sustainable growth rate if you use the formula ROE 3 b and beginning of period equity?

What is the sustainable growth rate if you use end of period equity in this formula? Is this number too high or too low? Why?

Related Book For answer-question

Financial Accounting

ISBN: 978-0078025549

3rd edition

Authors: J. David Spiceland, Wayne Thomas, Don Herrmann

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Posted Date: May 10, 2021 03:31 AM

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Cambria, Inc., had equity of $145,000 at the beginning of the year. At the end of the

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Financial Accounting

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