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BFC Ltd. has the following financial information: Net Profit: $5 million; Sales: $100 million; Total Assets: $50 million; Equity $22.73 Million; Earnings Per Share (EPS):

BFC Ltd. has the following financial information:

Net Profit: $5 million; Sales: $100 million; Total Assets: $50 million; Equity $22.73 Million; Earnings Per Share (EPS): $3.00; Dividends Per Share: $1.00.

What is BFCs return on equity and the estimated sustainable growth rate?

In general, how would the growth rate and payout ratio of value firms be different from growth firms? Explain why.

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