Question: *Use the information provided in Question 3a to answer this question. 3b. If Intelligent Consulting Companys dividend payout ratio for 2020 is 35%, what is

*Use the information provided in Question 3a to answer this question.

3b. If Intelligent Consulting Companys dividend payout ratio for 2020 is 35%, what is the firms sustainable growth rate (SGR) for 2021? (5 marks)

*Use the information provided in Question 3a to answer this question.

3c. Discuss how Intelligent Consulting Company can achieve a higher growth rate in sales than indicated by SGR in 2021. (10 marks)

Question 3 (25 marks) Extracts from Intelligent Consulting Company's most recent financial statements are as below: 2020 2021 Sales 983,450 1,225,138 Net profit 413,280 523,288 Total Assets 14,275,120 10,720,120 Total Equity 5,298,000 2,225,873 *Use the above information to answer Question 3a, 36 and 3c. Required: 3a. Using DuPont framework, calculate Intelligent Consulting Company's ROE for 2020 and 2021, and examine the sources of these differences. (10 marks) Question 3 (25 marks) Extracts from Intelligent Consulting Company's most recent financial statements are as below: 2020 2021 Sales 983,450 1,225,138 Net profit 413,280 523,288 Total Assets 14,275,120 10,720,120 Total Equity 5,298,000 2,225,873 *Use the above information to answer Question 3a, 36 and 3c. Required: 3a. Using DuPont framework, calculate Intelligent Consulting Company's ROE for 2020 and 2021, and examine the sources of these differences. (10 marks)

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