A firm has a net income of

$1.8

million on sales of

$40

million, average assets of

$40

million, and stockholders' equity of

$25

million. If the firm distributes 30 percent of its profits as dividends, calculate the Sustainable Growth Rate.

16. A firm has a net income of $1.8 million on sales of $40 million, average assets of $40 million, and stockholders' equity of $25 million. If the firm distributes 30 percent of its profits as dividends, calculate the Sustainable Growth Rate