You are given the following information on Kayla's Heavy Equipment: Profit margin Capital intensity ratio Debt-equity ratio 7.3% .95 1.05 2$ 84,000 2$ Net income Dividends 24,000 Calculate the sustainable growth rate. (Do not round intermediate calculations a enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter3: Analysis Of Financial Statements
Section: Chapter Questions
Problem 15SP
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You are given the following information on Kayla's Heavy Equipment:
Profit margin
Capital intensity ratio
Debt-equity ratio
7.3%
.95
1.05
%24
84,000
24
24,000 :
Net income
Dividends
Calculate the sustainable growth rate. (Do not round intermediate calculations and
enter your answer as a percent rounded to 2 decimal places, e.g.., 32.16.)
Sustainable growth rate
***** **
23
%23
%23
%23
%23
%23
%23
Transcribed Image Text:You are given the following information on Kayla's Heavy Equipment: Profit margin Capital intensity ratio Debt-equity ratio 7.3% .95 1.05 %24 84,000 24 24,000 : Net income Dividends Calculate the sustainable growth rate. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g.., 32.16.) Sustainable growth rate ***** ** 23 %23 %23 %23 %23 %23 %23
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