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If Swanson Industries has Asset turnover: Sales / total assets = 2.7, Financial leverage: Total assets / equity = 2.8, Return on sales (ROS): Net
If Swanson Industries has Asset turnover: Sales / total assets = 2.7, Financial leverage: Total assets / equity = 2.8, Return on sales (ROS): Net income /sales = 5.8%: Dividend retention (R): Fraction of net income retained = 2/3. If the company would like to achieve a g* of 39% with no change in R or assets turnover or ROS, what level of financial leverage would be required?
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