Harley Davidson, Inc., the iconic motorcycle company, has the following ratios for the years 2000 through 2004:

a. Calculate Harley Davidson's annual sustainable growth rate from 2001 through 2004.
b. Did Harley Davidson have a growth problem in these years?
c. How did Harley Davidson cope with its sustainable growth problems?

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2000 2001 2002 2003 2004 12.3 91.9 13.5 92.8 15.5 92.2 16.7 86.6 0.97 Profit margin (% Retention ratio (%) Asset turnover (X) Assets (end of year, millions) $2,436 $3,118$3,861 $4,923 $5,483 Equity (end of year, millions) $1,406 $1,756 $2,233 $2,958S3,219 Growth rate in sales (%) 11.4 91.3 1.25 1.14 1.00 17.8 16.4 21.4 14.0 8.5