Based on the following information, calculate the sustainable growth rate for Sully, Inc.: Profit margin = 5.2%

Question:

Based on the following information, calculate the sustainable growth rate for Sully, Inc.:

Profit margin = 5.2%

Total debt ratio = .30

Payout ratio = 15%

What is the ROA here?

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.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Essentials of Corporate Finance

ISBN: 978-1259277214

9th edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

See More Books

Question Posted: Jun 30, 2016 09:31 AM

See More Questions

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...
Based on the following information, calculate the sustainable growth rate for Wiggins, Inc.: Profit margin = 10.5% Total asset turnover = 1.40 Total debt ratio = .20 Payout ratio = 15% What is the...
Based on the following information, calculate the sustainable growth rate for Kalebs Kickboxing: Profit margin = 7.1% Capital intensity ratio = .75 Debtequity ratio = .60 Net income = $48,000...
Children out of School in America is a report on delinquency of school-age children prepared by the Childrens Defense Fund (CDF), a government-sponsored organization. Consider the following three...
Why do consumers of services perceive higher levels of risk associated with their purchases compared to goods purchases?
you've seen a number of reforms that have been implemented in Canada and other countries. Looking into the future, where do you see Canadian reform going in the next five years?
Describe the key concepts in international business. L01
Journalize the following transactions that occurred in January 2018 for Sylvia's Amusements. No explanations are needed. Identify each accounts payable and accounts receivable with the vendor or...
Complying with sections of the Sarbanes-Oxley Act that require internal reporting of data often requires implementing additional resources. Companies generally adopt methods such as the Committee of...
Bright Sparks Electrical - Bank Register Report: Now that you have completed the journals for the month, you need to prepare the Bank Register Report in the template below. Not all general journals...
A firm wishes to maintain an internal growth rate of 6.8 percent and a dividend payout ratio of 25 percent. The current profit margin is 7.3 percent and the firm uses no external financing sources....
You've collected the following information about Etna, Inc.: Sales = $275,000 Net income = $19,000 Dividends = $8,100 Total debt = $67,000 Total equity = $91,000 What is the sustainable growth rate...
In Exercises use the limit process to find the area of the region bounded by the graph of the function and the x-axis over the given interval. Sketch the region. y=xx, [1,1]
Explain in details the reasons for your classifications. Classify the following processes as batch, continuous, or semibatch, and transient or steady- state. 1. A balloon is filled with air at a...
Question 5. A first responder drone of mass m slug is launched with a velocity vo ft/sec and constant engine force F from a level ground and moves vertically upward to discover a sense of life in a...
As part of the investigation of the collapse of the roof of a building. a testing laboratory is given all the available bolts that connected the steel structure at 3 different positions on the roof....
1) Baris Diary Co. has three product and divisions for production process of Milk, Yogurt and Cheese. Company's data show following resulst for 2014: Milk Yogurt Revenue 100.000TL 125.000TL Cheese...
Problem 11-4B (Algo) Prepare a statement of cash flows-indirect method (LO11-2, 11-3, 11-4, 11-5) The income statement, balance sheets, and additional information for Virtual Gaming Systems are...
Which statement is true about electron shielding of nuclear charge? a) Outermost electrons efficiently shield one another from nuclear charge. b) Core electrons efficiently shield one another from...
A Bloomberg Businessweek subscriber study asked, In the past 12 months, when traveling for business, what type of airline ticket did you purchase most often? A second question asked if the type of...
Stock Valuation a substantial percentage of the companies listed on the NYSE and NASDAQ dont pay dividends, but investors are nonetheless willing to buy shares in them. How is this possible given...
Stock Valuation a substantial percentage of the companies listed on the NYSE and NASDAQ dont pay dividends, but investors are nonetheless willing to buy shares in them. How is this possible given...
Dividend Policy referring to the previous questions, under what circumstances might a company chooses not to pay dividends?
Present Value Computations Using the present value tables, solve the following. ( Click here to access the PV and FV tables to use with this problem. ) Round your answers to two decimal places....
A company provided the following data: Sales $887,000 Variable costs $546,800 Fixed costs $310,000 Expected production and sales in units 36,000 What is the break-even point in sales dollars? Please...
How to solve them..equation and explain ..please.. 1. Selected information from the companys financial records is presented below Equipment, December 31, 2013 $300,000 Equipment, December 31, 2014...

Based on the following information, calculate the sustainable growth rate for Sully, Inc.: Profit margin = 5.2%

Question:

Step by Step Answer:

Calculate sustainable growth rate The sustainable growth rate is calculated using the below formula ...View the full answer

Essentials of Corporate Finance

Students also viewed these Cost Accounting questions