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Flamingo, Inc. began the year with equity totaling R 1 5 3 , 0 0 0 , and by year - end, its total assets
Flamingo, Inc. began the year with equity totaling R and by yearend, its total assets amounted to R The company did not issue any new equity during the year. It recorded a net income of R with dividends amounting to R What is the sustainable growth rate of the company? Additionally, what is the sustainable rate if the formula ROE x b is applied using the beginningoftheperiod equity? Furthermore, what is the sustainable growth rate when using endoftheperiod equity in this formula? Lastly, is this figure deemed too high or too low, and why?
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