Question: 4S6 Inc has a profit margin of 12%. It has a capital intensity ratio of 0.80 and its debtiequity ratio is 2. The company's

4S6 Inc has a profit margin of 12%. It has a capital intensity ratio of 0.80 and its debtiequity ratio is 2. The company's net income was SIOO,OOO and company paid a dividend of 570,000. What is the sustainable growth rate? What is the company s internal growth rate? SGR = ROE x R / 1- (ROE x R) = - 0.3) = 15.61% IGR = ROA x R / 1- x R) = 0.15 0.3) = 0.045 / 0.955 - 4.712%

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