A company has a retention rate of 50%, sales of $25,000, beginning equity of $50,000 and profit
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A company has a retention rate of 50%, sales of $25,000, beginning equity of $50,000 and profit margins of 10%, an asset turnover ratio of .75 and debt of $10,000. What is its sustainable growth rate?
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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Meaning Sustainable growth rate is the maximum growth rate that can be achieved using both internal ...View the full answer
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Related Book For
Financial Reporting Financial Statement Analysis And Valuation A Strategic Perspective
ISBN: 1711
9th Edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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