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A Vegetable Company has the following results: Net sales sh6,000,000 Net total assets sh4,000,000 Depreciation sh160,000 Net income sh400,000 Long-term debt sh2,000,000 Equity sh1,160,000 Dividends
A Vegetable Company has the following results: Net sales sh6,000,000 Net total assets sh4,000,000 Depreciation sh160,000 Net income sh400,000 Long-term debt sh2,000,000 Equity sh1,160,000 Dividends sh160,000 Required: a. Compute the Company's ROE directly. 9:39 in the morning V/ b. Using the ROE computed in Part (a) above, what is the expected sustainable growth rate for the Company? 9:39 in the morning / c. Assuming the firm's net profit margin went to 0.04, what would happen to the Company's ROE? 9:40 in the morning V
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