Scott Kelly is reviewing MasterToys financial statements in order to estimate its sustainable growth rate. Using the

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Scott Kelly is reviewing MasterToy’s financial statements in order to estimate its sustainable growth rate. Using the information presented in Table 14.19

a. Identify and calculate the components of the DuPont formula.

b. Calculate the ROE for 2009 using the components of the DuPont formula.

c. Calculate the sustainable growth rate for 2009 from the fi rm’s ROE and plowback ratios. LO.1

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Essentials Of Investments

ISBN: 9780697789945

8th Edition

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

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