The Bubar Building Co. has the following current financial results ($000). On the average, other building companies
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The Bubar Building Co. has the following current financial results ($000).
On the average, other building companies pay about one-quarter of their earnings in dividends, earn about six cents on the sales dollar, carry assets worth about six months of sales, and finance one-third of their assets with debt. Use the sustainable growth rate concept to analyze Bubar’s inherent ability to grow without selling new equity versus that of an average building company. Identify weak areas and suggest furtheranalyses.
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Revenue $45,000 Ats $37,000 EAT Dividends 3,600 1,800 Equity 28,580
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gs 1d ROS TA Equity Turnover Multiplier Bubar 624 5 8 12 13 Industry 135 75 6 20 15 Bub...View the full answer
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