Hello,

Can you please give me the solution for this question?

Analysis for Financial Management" by Robert C. Higgins 11th edition - Chapter 4 Problem 10

a. Use the information below from Tournment Sporting Goods's annual financial statements to calculate the actual and sustainable growth rate for each year from 2010 - 2014.

b. Do you think Tournment Sporting Goods is having a problem financing its growth? Is the increase in dividends a good idea for the company?

Tournment Sporting Goods($ in thousands)

2009 2010 2011 2012 2013 2014

Sales 477.84 491.62 706.52 792.01 876.52 1,088.46

Net income - 43.27 26.31 38.48 44.84 25.76

Total assets - 477.06 648.42 664.26 697.16 982.63

Equity - 346.32 426.01 465.85 432.91 553.27

Dividends - - - 0.80 1.65 2.22