Question
The following is adapted from Financial Management for Executives (2nd ed.): Procter and Gamble (P&G) reports the following information in a recent financial statement (the
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The following is adapted from Financial Management for Executives (2nd ed.): Procter and Gamble (P&G) reports the following information in a recent financial statement (the figures represent millions except for Earnings per share and Dividends per share). Use the below information to compute P&Gs sustainable growth rate for Years 2 and 3 and comment on P&Gs sustainable growth rate relative to its actual rate of growth.
| Year 1 | Year 2 | Year 3 | |
| Sales | $56,741 | $68,222 | $83,503 |
| Net income | 8,684 | 10,340 | 12,075 |
| Shareholders equity | 62,908 | 66,760 | 69,494 |
| Earnings per share | 2.79 | 3.22 | 3.86 |
| Dividends per share | 1.15 | 1.28 | 1.45 |
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Corporate Governance In Japan Institutional Change And Organizational Diversity
Authors: Masahiko Aoki , Gregory Jackson, Hideaki Miyajima
1st Edition
0199284520,0191536385
