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In the table below, we report WestJet's sustainable growth rate as 13.62% Air Canada WestJet 3.505.15 1,992.51 2.51 1.25 - 72% 16.97% Performance Measures Market

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In the table below, we report WestJet's sustainable growth rate as 13.62% Air Canada WestJet 3.505.15 1,992.51 2.51 1.25 - 72% 16.97% Performance Measures Market value added (s millions) Market-to-book ratio Profitability Measures Return on equity (ROE) Return on assets (ROA) Return on capital (ROC) Operating profit margin Efficiency Measures Asset turnover .11% 6.49% 9.31% 196 .08% 7.34% 131 .88 21022 86.856 17-36 4.20 81 28 -5.50 -72 -778 161 115 62 LOI 9.56 Receivables turnover Average collection period (days) Leverage Measures Long-term debt ratio Long-term debt-equity ratio Debt-to-equity ratio Debt-to-asset ratio Times interest earned Cash coverage ratio Liquidity Measures Not working capital to total assets Current ratio Quick ratio Cash ratio Growth Measures Payout ratio Sustainable growth 2.46 14.19 .01 .05 103 .88 109 .92 24 89 o .194172 Note Air Canada and WestJet do not have inventory of finished goods like a mandacturing firm Source: Used with permission of Air Canada a. What would the sustainable growth rate be if WestJet's payout ratio increased to 70%? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Sustainable growth rate b. What would the sustainable growth rate be if WestJet's return on equity was 30%? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Sustainable growth rate

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