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1. Friedmans Inc. is the third largest jewelry chain store in the US with 645 stores nationwide. Use the information below from Friedmans annual financial
1. Friedmans Inc. is the third largest jewelry chain store in the US with 645 stores nationwide. Use the information below from Friedmans annual financial statement to calculate the actual and sustainable growth rate for each year.
2. Do you think Friedmans Inc. is having problem financing its growth? Is the increase in dividends a good idea for Friedmans?
| FRIEDMANS INC. ($ In Millions) | ||||||||
| 1996 | 1997 | 1998 | 1999 | 2000 | 2001 | |||
| Sales | $ 192 | $ 237 | $ 287 | $ 339 | 411.78 | 446.84 | ||
| Net Income | $ - | $ 19 | $ 11 | $ 16 | 19.7 | 12.23 | ||
| Total Assets | $ 223 | $ 269 | $ 275 | 318.43 | 451.32 | |||
| Equity | $ 147 | $ 172 | $ 181 | $ 192 | 211.03 | 222.57 | ||
| Dividends | $ - | $ - | $ - | $ 0 | 0.79 | 0.94 | ||
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