Question: What is the ROE? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.

What is the ROE? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. What is the sustainable growth rate? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Income Statement Sales Costs Taxable income Tax (25%) Net Income $ 96,600 68,850 $ 27,750 6,938 $ 20,813 Current assets Fixed assets Total Balance Sheet $36,500 Debt Equity 95,900 $ 132,400 Total $ 47,400 85,000 $ 132,400 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 40 percent dividend payout ratio. No external equity financing is possible.
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