Ms. JJ was reviewing the recent performance of Ktel, a company with a reputation for producing high-quality home furniture. By 2018, the company was producing a variety of home furnishings, includint reclining sofas, sleep sofas, living room cabinets, upholstered furniture, and dining room furniture. In the past decade, the company had also entered the office furniture business by producing office systems and patient seating for clinics and hospitals. To determine the impact that diversification and expansion had on Ktel, Ms. JJ collected the following data for the company: a: Fill the blanks in the table. How had KTel's sustainable growth rate (SGR) changed over time? The formula for the SGR is "ROE"Retention Rate", or "ROE*(1 - Dividend payout ratio)." SGR means how much the company can grow without changing capital structure. What caused any changes you found? When you compute the financial ratios for this homework, do not use average ratios but use only the single year ratios. \begin{tabular}{r|rrrrr|} \hline & 2018 & 2017 & 2016 & 2015 \\ \cline { 4 - 6 } & 11.88% & 13.86% & 16.01% & 20.65% \\ \hline ROE = & $0.01 & $0.01 & $0.01 & $0.01 \\ \hline Dividends payout ratio = & & & & \\ \hline Retention ratio = & & & & \\ \hline Sustainable Growth Rate = & & & & \\ \hline Growth Rate in Sales = & & & & \end{tabular} Explain: Compared the folloing industry's financial ratios over the same years, how did Ktel ? \begin{tabular}{||l|r|r|r|r|} \hline & \multicolumn{3}{|c|}{ HOME FURNITURE INDUSTRY RATIOS } \\ \hline Return on equity & 2018 & 2017 & 2016 & 2015 \\ \hline Retention rate & 15.12% & 15.54% & 15.31% & 15.74% \\ \hline Sustainable growth rate & 71.00% & 71.00% & 71.00% & 72.00% \\ \hline \end{tabular} Explain: Ms. JJ was reviewing the recent performance of Ktel, a company with a reputation for producing high-quality home furniture. By 2018, the company was producing a variety of home furnishings, includint reclining sofas, sleep sofas, living room cabinets, upholstered furniture, and dining room furniture. In the past decade, the company had also entered the office furniture business by producing office systems and patient seating for clinics and hospitals. To determine the impact that diversification and expansion had on Ktel, Ms. JJ collected the following data for the company: a: Fill the blanks in the table. How had KTel's sustainable growth rate (SGR) changed over time? The formula for the SGR is "ROE"Retention Rate", or "ROE*(1 - Dividend payout ratio)." SGR means how much the company can grow without changing capital structure. What caused any changes you found? When you compute the financial ratios for this homework, do not use average ratios but use only the single year ratios. \begin{tabular}{r|rrrrr|} \hline & 2018 & 2017 & 2016 & 2015 \\ \cline { 4 - 6 } & 11.88% & 13.86% & 16.01% & 20.65% \\ \hline ROE = & $0.01 & $0.01 & $0.01 & $0.01 \\ \hline Dividends payout ratio = & & & & \\ \hline Retention ratio = & & & & \\ \hline Sustainable Growth Rate = & & & & \\ \hline Growth Rate in Sales = & & & & \end{tabular} Explain: Compared the folloing industry's financial ratios over the same years, how did Ktel ? \begin{tabular}{||l|r|r|r|r|} \hline & \multicolumn{3}{|c|}{ HOME FURNITURE INDUSTRY RATIOS } \\ \hline Return on equity & 2018 & 2017 & 2016 & 2015 \\ \hline Retention rate & 15.12% & 15.54% & 15.31% & 15.74% \\ \hline Sustainable growth rate & 71.00% & 71.00% & 71.00% & 72.00% \\ \hline \end{tabular} Explain