Sustainable Growth Based on the following information calculates the sustainable growth rate for Hendrix Guitars, Inc.: Profit

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Sustainable Growth Based on the following information calculates the sustainable growth rate for Hendrix Guitars, Inc.:

Profit margin = 6.4%

Total debt ratio = .40

Payout ratio = 40%

Asset Turnover
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.

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Fundamentals of Corporate Finance

ISBN: 978-0077861629

8th Edition

Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan

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Question Posted: Apr 26, 2011 06:34 AM

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Sustainable Growth Based on the following information calculates the sustainable growth rate for Hendrix Guitars, Inc.: Profit

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We should begin by calculating the DE ratio We calculate the DE ratio as foll...View the full answer

Fundamentals of Corporate Finance

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