Corporate Fin Focused Approach
Corporate Fin Focused Approach
5th Edition
ISBN: 9781285660516
Author: EHRHARDT
Publisher: Cengage
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### Sustainable Growth Rate Calculation for Kayla’s Heavy Equipment

**Provided Information:**

- **Profit Margin:** 7.3%
- **Capital Intensity Ratio:** 0.95
- **Debt-Equity Ratio:** 1.05
- **Net Income:** $84,000
- **Dividends:** $24,000

**Task:**
Calculate the sustainable growth rate. (Do not round intermediate calculations and enter your answer as a percentage rounded to 2 decimal places, e.g., 32.16.)

**Answer:**
Sustainable Growth Rate: __ %
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Transcribed Image Text:### Sustainable Growth Rate Calculation for Kayla’s Heavy Equipment **Provided Information:** - **Profit Margin:** 7.3% - **Capital Intensity Ratio:** 0.95 - **Debt-Equity Ratio:** 1.05 - **Net Income:** $84,000 - **Dividends:** $24,000 **Task:** Calculate the sustainable growth rate. (Do not round intermediate calculations and enter your answer as a percentage rounded to 2 decimal places, e.g., 32.16.) **Answer:** Sustainable Growth Rate: __ %
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