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Coolidge, Inc. provides private policing and security services, primarily for American Indian reservations. Following are some selected financial data for the company for the period
Coolidge, Inc. provides private policing and security services, primarily for American Indian reservations. Following are some selected financial data for the company for the period 2015-2019:
Coolidge, Inc. provides private policing and security services, primarily for American Indian reservations. Following are some selected financial data for the company for the period 2015-2019: Profit Margin (\%) Retention Ratio (\%) Total Asset Turnover Ratio Financial Leverage (Assets/Equity) Actual Growth Rate in Sales (\%) 20155.0%99.5%1.201.7036.8%20166.0%100.0%1.901.8074.6%20173.6%100.0%1.801.703.1%20184.2%100.0%2.001.7015.9%20196.2%100.0%2.501.7047.1% a) Calculate the company's sustainable growth rate for the years 20152019. b) Compare the company's sustainable growth rate with its actual growth rate in sales. What growth management challenge did the company face over this period? c) How did the company cope with this challenge? Input area: Profit Margin (\%) Retention Ratio (\%) Total Asset Turnover Ratio Financial Leverage (Assets/Equity) Actual Growth Rate in Sales (\%) \begin{tabular}{|l|l|l|l|l|} \hline2015 & 2016 & 2017 & 2018 & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline \end{tabular} Output area: \begin{tabular}{|llllll|} \hline Sustainable Growth Rate & 2015 & 2016 & 2017 & 2018 & 2019 \\ \hline \end{tabular} Sustainable Growth Rate 201510.1%201620.5%201711.0%201814.3%201926.4% b) Intepretation: What growth management challenge did the company face over this period? (briefly explain here) c) Intepretation: How did the company cope with this challenge? (briefly explain here)Step by Step Solution
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