In 2019, Sunflower Co. had sales of $35 million, net income of $5.6. million, and a dividend payout ratio of 40%. The firm's total assets
In 2019, Sunflower Co. had sales of $35 million, net income of $5.6. million, and a dividend payout ratio of 40%. The firm's total assets were $48 million and the firm had spontaneous financing of $7 million. All assets are presently being used at maximum capacity.
What is Sunflowers sustainable growth rate for 2020?
a. 7.21%
b. 8.93%
c. 9.70%
d. 11.34%
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Authors: David Hartzell, Andrew E. Baum
2nd Edition
1119526094, 978-1119526094
