What is sustainable growth rate

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1. A firm has adopted a policy whereby it will not seek any additional external financing. Given this, what is the maximum growth rate for the firm if it has net income of $15,000, total equity of $100,000, total assets of $175,000, and a 50 percent dividend payout ratio?

2. A firm has a return on equity of 16 percent, a return on assets of 11 percent, and a 40 percent dividend payout ratio. What is the sustainable growth rate?

Reference no: EM131960314

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