Based on the following information, calculate the sustainable growth rate for Southern Sky: Profit margin = 7.4%
Question:
Based on the following information, calculate the sustainable growth rate for Southern Sky:
Profit margin = 7.4%
Capital intensity ratio = 0.55
Debt-equity ratio = 0.30
Net income = $70,000
Dividends = $25,000
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We need the return on equity to calculate the sustainable growth rate To calc...View the full answer
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Related Book For
Essentials Of Corporate Finance
ISBN: 9780073405131
6th Edition
Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan
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