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Gilmore, Inc., had equity of $220,000 at the beginning of the year. At the end of the year. the company had total assets of $375,000.
Gilmore, Inc., had equity of $220,000 at the beginning of the year. At the end of the year. the company had total assets of $375,000. During the year, the company sold no new equity. Net income for the year was $46,000 and dividends were $6.800 a. What is the sustainable growth rate for the company? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places. e.g., 32.16.) b. What is the sustainable growth rate if you use the formula ROE x b and beginning of period equity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) What is the sustainable growth rate if you use end of period equity in this formula? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Sustainable growth rate b. ROE b (using beginning of period equity) c. ROE * b (using end of period equity)
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