Based on the following information, calculate the sustainable growth rate for Southern Lights Co.: Profit margin =

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Based on the following information, calculate the sustainable growth rate for Southern Lights Co.:

Profit margin = 8.1%

Capital intensity ratio = .45

Debt-equity ratio = .55

Net income = $120,000

Dividends = $65,000

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Essentials of Corporate Finance

ISBN: 978-1259277214

9th edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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Question Posted: Jun 30, 2016 09:30 AM

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Based on the following information, calculate the sustainable growth rate for Southern Lights Co.: Profit margin =

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The firm can accomplish the extreme potential growth rate without external equity financing by retai...View the full answer

Essentials of Corporate Finance

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