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Sourstone, Inc., had total assets of $304,000 and equity of $195,000 at the beginning of the year. At the end of the year, the company
Sourstone, Inc., had total assets of $304,000 and equity of $195,000 at the beginning of the year. At the end of the year, the company had total assets of $329,000. During the year, the company sold no new equity. Net income for the year was $109,000 and dividends were $52,500. What is the sustainable growth rate if you calculate ROE based on the end-of-period equity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) What is the sustainable growth rate if you calculate ROE based on the beginning-of- period equity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Answer is complete but not entirely correct. 28.96096 Sustainable growth rate 0196 Sustainable growth rate 40.80
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