Hasbro, Incorporated, sells toys and games in over 120 countries, including popular brands such as Nerf and Play-Doh. The following are selected financial data for the company for the period 2012 to 2016. Profit margin (%) 2012 8.1 2013 2014 2015 2016 7.1 9.6 10.6 11.6 Retention ratio (%) 32.6 45.6 47.6 51.0 54.6 Asset turnover (X) 0.96 0.91 0.92 0.92 0.97 Financial leverage (X) 3.11 2.91 2.66 3.21 3.11 Growth rate in sales (%) (4.6) (2.6) 4.6 4.1 12.6 Source: Data from Hasbro 2012 to 2016 annual reports Calculate Hasbro's annual sustainable growth rate from 2012 through 2016. Note: Round your answers to 1 decimal place. Year Sustainable Growth Rate 2012 % 2013 %

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Chapter4A: Nopat Breakeven: Revenues Needed To Cover Total Operating Costs
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Problem 4-9
Hasbro, Incorporated, sells toys and games in over 120 countries, including popular brands such as Nerf and Play-Doh. The following
are selected financial data for the company for the period 2012 to 2016.
2012
2013
2014
2015
2016
Profit margin (%)
8.1
7.1
9.6
10.6
11.6
Retention ratio (%)
32.6
45.6
47.6
51.0
54.6
Asset turnover (X)
0.96
0.91
0.92
0.92
0.97
Financial leverage (X)
3.11
2.91
2.66
3.21
3.11
Growth rate in sales (%)
(4.6)
(2.6)
4.6
4.1
12.6
Source: Data from Hasbro 2012 to 2016 annual reports
Calculate Hasbro's annual sustainable growth rate from 2012 through 2016.
Note: Round your answers to 1 decimal place.
Year
Sustainable Growth Rate
2012
%
2013
%
2014
%
2015
%
2016
%
Transcribed Image Text:Problem 4-9 Hasbro, Incorporated, sells toys and games in over 120 countries, including popular brands such as Nerf and Play-Doh. The following are selected financial data for the company for the period 2012 to 2016. 2012 2013 2014 2015 2016 Profit margin (%) 8.1 7.1 9.6 10.6 11.6 Retention ratio (%) 32.6 45.6 47.6 51.0 54.6 Asset turnover (X) 0.96 0.91 0.92 0.92 0.97 Financial leverage (X) 3.11 2.91 2.66 3.21 3.11 Growth rate in sales (%) (4.6) (2.6) 4.6 4.1 12.6 Source: Data from Hasbro 2012 to 2016 annual reports Calculate Hasbro's annual sustainable growth rate from 2012 through 2016. Note: Round your answers to 1 decimal place. Year Sustainable Growth Rate 2012 % 2013 % 2014 % 2015 % 2016 %
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