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Eisenhower Co. has a storied history, but recently shareholders have been dissatisfied with its anemic growth. Following are selected financial data for the period 2015-2019:
Eisenhower Co. has a storied history, but recently shareholders have been dissatisfied with its anemic growth. Following are selected financial data for the period 2015-2019: 1 Profit Margin (%) Retention Ratio (%) Total Asset Turnover Ratio Financial Leverage (Assets/Equity) Actual Growth Rate in Sales (%) 2015 13.5% 50.0% 1.90 1.50 6.2% 2016 13.2% 50.0% 1.85 1.50 3.0% 2017 13.7% 50.0% 1.70 1.50 -2.1% 2018 13.1% 50.0% 1.75 1.50 4.7% 2019 12.4% 50.0% 1.65 1.50 3.5% a) Calculate the company's sustainable growth rate for the years 2015 - 2019. 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) What could the company do to cope with this challenge
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