Log on to Yahoo’s Industry center at biz.yahoo.com/ic/. The industry browser provides some financial ratios for different sectors. What is the sustainable rate of growth for a sample of different industries if the component firms maintain their plowback ratios and returns on equity? (Note: Although Yahoo does not report the plowback ratio, you can calculate it by multiplying the dividing yield by the P/E ratio.) Do you think that those industries with a high return on equity can continue to earn such a high return on new investment?

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What is the sustainable rate of growth for a sample of different industries if the component firms maintain their plowback ratios and returns on equity What Is the Sustainable Growth RateSGR The susta... View the full answer