Calculate the sustainable growth rate for East Coast Yachts. Calculate the EFN and prepare pro forma income statements and balance sheets assuming growth at precisely this rate. Recalculate the ratios in the previous question. What do you observe at the East Coast industry ratios?

Yacht Industry Ratios UPPER QUARTILE 1.97 1.01 1.46 16.43 22.43 LOWER QUARTILE MEDIAN Current ratio Quick ratio Total asset turnover Inventory turnover Receivables turnover Debt ratio Debt-equity ratio Equity multiplier Interest coverage Profit margin Return on assets Return on equity 86 43 1.10 12.18 10.25 32 83 1.83 5.72 1.51 75 1.27 14.38 17.65 .56 1.13 2.13 8.21 7.48% 10.67% 19.32% 61 144 2.44 10.83 5.02% 9.05% 14.16% 14.06% 26.41%