Question
Use the following information to estimate the sustainable growth rate: Sales $1,500,000 Asset/equity 1 Sales/assets 2 Fixed cost $200,000 Contribution margin 20% Interest rate 10%
Use the following information to estimate the sustainable growth rate:
| Sales | $1,500,000 |
| Asset/equity | 1 |
| Sales/assets | 2 |
| Fixed cost | $200,000 |
| Contribution margin | 20% |
| Interest rate | 10% |
| Tax rate | 35% |
| Dividend payout ratio | 0% |
| g* = 4.69% | ||
| g* = 8.67% | ||
| g* = 9.41% | ||
| g* = 10.32% |
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ISE International Financial Management
Authors: Cheol Eun, Bruce Resnick, Tuugi Chuluun
9th International Edition
1260575314, 9781260575316
