Sustainable Growth Rate In the chapter, we discussed the two versions of the sustainable growth rate formula.

Question:

Sustainable Growth Rate In the chapter, we discussed the two versions of the sustainable growth rate formula. Derive the formula ROE X b from the formula given in the chapter, where ROE is based on beginning of period equity. Also, derive the formula ROA X b from the internal growth rate formula.

Internal Growth Rate
"An internal growth rate (IGR) is the highest level of growth achievable for a business without obtaining outside financing, and a firm's maximum internal growth rate is the level of business operations that can continue to fund and grow the...