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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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