Managing Growth: Sustainable Growth

Rate

Law Specialists' sustainable growth rates $($these

are the product of the first four rows of

financial information$)$:

$20172018201920202021$

Sustainable

growth rate $(\%)$

A$.$ Calculate Law Specialists' sustainable

growth rate in each year.

B$.$ Comparing the company's sustainable

growth rate with its actual growth rate in

sales, what growth problems did the

company face over this period?

C$.$ Please refer to the selected financial

information for Law Specialists, Inc. above.

Law Specialists paid its first dividends in

As an analyst, assess the company's

decision to pay dividends.