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10. Calculate Sustainable Growth Rate APJ Corporation given the following information Sales = $397,460 EPS (Earnings Per Share) = $1.75 Capital Intensity Ratio (CIR) =

10. Calculate Sustainable Growth Rate APJ Corporation given the following information

Sales = $397,460

EPS (Earnings Per Share) = $1.75

Capital Intensity Ratio (CIR) = 1.6 Times

Total Debt is 60% of total Assets (Total Assets are not given intentionally)

DPS (Dividends Per Share) = $0.75 per share

Number of shares outstanding is 25,000

I know the formula is ROE*b/1-(ROE*b) but I am having a tough time cal ROE (net income/equity). Please provide detail so that I can learn how to solve future problems.

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