What is approximate sustainable growth rate for the company

Reference no: EM131419542

Sustainable Growth Rate Use the sustainable growth rate equations from the previous problem to answer the following questions. No Return, Inc., had total assets of $380,000 and equity of $230,000 at the beginning of the year. At the end of the year, the company had total assets of $430,000. During the year the company sold no new equity. Net income for the year was $95,000 and dividends were $43,000. What is the approximate sustainable growth rate for the company? What is the exact sustainable growth rate? What is the approximate sustainable growth rate if you calculate ROE based on the beginning of period equity? Is this number too high or too low? Why?

Reference no: EM131419542

Questions Cloud

Examine developments that are currently taking place : Examine changes and developments that are currently taking place in the field of HR management. Predict two changes and developments that are likely to occur in this field in the next 10 years.

Synthesize the arguments of two essays : You will synthesize the arguments of two essays from our text in order to explore your own ideas regarding the material they discuss. This means more than simply summarizing the articles: you are discussing how and why two texts addressing similar..

How could businesses abuse technology : How would an individual's privacy rights be violated if Facial Recognition Technology is used by businesses - How could businesses abuse this technology in advertising campaigns?

How they may impact the company environment and business : Therefore, as you review the images and stories contained in the video, think about the reading and the laws that are discussed, and how they may impact the company, environment, and business practices in general.

What is approximate sustainable growth rate for the company : What is the approximate sustainable growth rate for the company? What is the exact sustainable growth rate? What is the approximate sustainable growth rate if you calculate ROE based on the beginning of period equity? Is this number too high or to..

Should taxes on alcohol and tobacco be increased : Should taxes on alcohol and tobacco be increased to help pay for rising medical costs - Should minors who commit violent crimes be tried as adults and Should taxes on people making over $250,000 a year be changed?

How conducting regular job analyses benefits employees : Analyze how conducting regular job analyses benefits employees, managers, and the organization. Describe how this type of benchmarking can strengthen an overall job analysis plan

Increase in interest rates may impact the scenario : 1) Create a scenario where an investor would benefit from using forward and future contracts to hedge an existing risk exposure. 2) Explain how an increase in interest rates may impact the scenario you created.

How has roe changed over this period : For the three most recent years, calculate the Du Pont identity for Disney. How has ROE changed over this period? How have changes in each component of the Du Pont identity affected ROE over this period?

User Account

All Pages