What is sustainable growth rate

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Reference no: EM131992638

1. A firm has an ROA of 10%, a dividend payout ratio of 40%, an Equity Multiplier of 1.60, what is the Sustainable Growth Rate?

9.04%

6.84%

9.60%

10.62%

2. If full capacity sales levels of existing equipment are $2,000,000 and the firm is currently selling 70% of capacity, what percent can sales grow before new Fixed Assets are required?

42.86%

25.00%

70.00%

30.00%

3. Current Assets = $900; Fixed Assets = $2,500; Accounts Payable = $300; Most recent year Sales of $1,500, PM% = 15%, Dividend Payout of 20%. If next year sales are projected to grow to $1,800, what is the External Financing Needed (EFN)?

$360.80

$566.00

$404.00

$548.00

Reference no: EM131992638

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