2. Sustainable growth [LO 4.3] In the chapter, we used Rosengarten Company to demonstrate how to calculate EFN. The ROE for Rosengarten is about 7.3 per cent and the plowback ratio is about 67 per cent. If you calculate the sustainable growth rate for Rosengarten, you will find it is only 5.14 per cent. In our calculation for EFN, we used a growth rate of 25 per cent. Is this possible? (Hint: Yes. How?)