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Stark Mining Ltd (SML) is an exclusive supplier of Valyrian Steel that recently reported Sales of $4 Billion with a Net Profit of $320 Million

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Stark Mining Ltd (SML) is an exclusive supplier of Valyrian Steel that recently reported Sales of $4 Billion with a Net Profit of $320 Million from which $256 Million was paid out as a Dividend. Currently their Asset Turnover ratio is .625 and the firm is being equally financed with debt and equity. Assuming SML will not issue any new equity and will keep their asset turnover, dividend payout ratio, level of leverage, and profit margin all constant, answer the following questions and be sure to show all supporting calculations. a) What will be their sustainable growth rate? [2 marks]

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