Question: Problem 4.14 = = Given the following information, compute the sustainable growth rate (SGR) and the ROE. a. Profit Margin 9.2% b. Capital Intensity Ratio

Problem 4.14 = = Given the following information, compute the sustainable growth rate (SGR) and the ROE. a. Profit Margin 9.2% b. Capital

Problem 4.14 = = Given the following information, compute the sustainable growth rate (SGR) and the ROE. a. Profit Margin 9.2% b. Capital Intensity Ratio 0.60 (TA/Sales) c. Debt-Equity 0.50 d. Net Income = $23,000 e. Dividends = $14,000 = Problem 4.8 What is Feral, Katz, & Co.'s maximum sales increase if no new equity is issued? Assume: Assets and costs are proportional to sales, 30% dividend payout ratio, and constant debt-equity ratio. Sales $46,000 30,400 - Costs Taxable Income - Taxes $15,600 5,304 Net Income $10,296 Net W. Cap. L. T. Debt Fixed Assets $21,000 100,000 $121,000 Equity $60,000 61,000 $121,000

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