ou gathered the following information about your company: Asset turnover ratio = 2 Assets = $4,000,000 Equity = $2,000,000 Profit margin = 10% Dividend payout ratio = 25% What is the sustainable growth rate of the company?

What level of initial equity investment is required if Year 2 sales are to reach $25,000?

If your company would like to achieve a g* of 35%, what retention ratio would be required?