Net Income = 50, Dividend payout ratio is 20%, Beginning Assets is 100, The Debt to Equity Ratio is .10.

SHOW YOUR WORK

A. Calculate beginning of period equity.

B. Calculate ending period equity.

C. Calculate the sustainable growth rate using the beginning equity level.

D. Calculate the sustainable growth rate using the ending equity level.

Sustainable Growth Rate = ROE + b Sustainable Growth Rate = ROE *b 1 - ROE + b