I know that they formula is ROE*b/1-(ROE*b) but I am having a tough time. I also know that ROE= net income/Equity. But the terminology in the problem is confusing me. Please help and explain so that I can process future questions. Thanks!

1. XYZ Corporation had profit margin ratio of 7.5% and Sales of $68,000. Total dividends declared were $800. On the balance sheet XYZ has Current assets of $11,300; Current liabilities of 10,300; Long-Term Debt of $12,700 and Net Fixed Assets of $54,000. Calculate the sustainable growth rate for XYZ Corp

Answer rating: 100% (QA)

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