Question
You have located the following information on Rock Company: debt ratio: 40%, capital intensity=2.25 times, profit margin= 8%and annual dividend payout ration = 25%. What
You have located the following information on Rock Company: debt ratio: 40%, capital intensity=2.25 times, profit margin= 8%and annual dividend payout ration = 25%. What is the sustainable growth for Rock?
I understand the formula for sustainable growth but it is =ROE*RR/(1-ROE*RR) but I do not understand how to get ROE or RR from the given information
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Managerial Accounting
Authors: Stacey WhitecottonRobert LibbyRobert Libby, Patricia LibbyRobert Libby, Fred Phillips
1st Edition
0078110777, 9780078110771
