Question: Please use the following data for the questions below: A company has an ROA of 6% and an equity multiplier (Total Assets / Equity) of

Please use the following data for the questions below: A company

has an ROA of 6% and an equity multiplier (Total Assets /

Please use the following data for the questions below: A company has an ROA of 6% and an equity multiplier (Total Assets / Equity) of 2.0. Net Income for last year was $5.0 Million, of which $2.0 Million was paid out as dividends. Using the above data and the formulas: Internal Growth Rate = (ROA x Plowback) / (1-(ROA x Plowback)) Sustainable Growth Rate = (ROE x Plowback)/(1-(ROE x Plowback)) What is the Sustainable Growth Rate? 08.24% 06.58% 04.92% 07.76% 05.58%

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