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Weatherford Industries Inc. has the following ratios: A0 S0 1 6; L0 S0 0 4; profit margin 0 10; and payout ratio 0 45, or
Weatherford Industries Inc. has the following ratios: A0 S0 1 6; L0 S0 0 4; profit margin 0 10; and payout ratio 0 45, or 45%. Sales last year were $100 million. Assuming that these ratios will remain constant, use the AFN equation todetermine themaximumgrowth rate(thesustainablegrowth rate)Weatherford can achieve without having to employ nonspontaneous external funds.
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