6. Sustainable Growth.If the Crash Davis Driving School has an ROE of 14.5 percent and a payout ratio of 30 percent, what is its sustainable growth rate?

(__________)

7. Sustainable Growth.Assuming the following ratios are constant, what is the sustainable growth rate?

(__________)

8. Calculating Internal Growth.The most recent financial statements for Shinoda Manufacturing Co. are shown below:

Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 40 percent dividend payout ratio. No external financing is possible. What is the internal growth rate?

(__________)

9. Total Asset Turnover.Kaleb's Karate Supply had a profit margin of 8.5 percent, sales of $16 million, and total assets of $6.8 million.

a. What was total asset turnover?

(__________)

b. If management set a goal of increasing total asset turnover to 2.75 times, what would the new sales figure need to be, assuming no increase in total assets?

(__________)

10. Market Value Ratios.Mustaine, Inc., has a current stock price of $54. For the past year, the company had net income of $7,900,000, total equity of $26,300,000, sales of $50,500,000, and 4.1 million shares of stock outstanding.

a.What are earnings per share (EPS)?

(__________)

b.Price-earnings ratio?

(__________)

c.Price-sales ratio?

(__________)

d.Book value per share? Market-to-book ratio?

(__________)

e. Market-to-book ratio?

(__________)

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