• Ask an Expert
• Get a Professional Answer
• 100% Satisfaction Guarantee
Neo, Tutor
Category: Homework
Satisfied Customers: 12101
Experience:  BS Accounting
4224391
Type Your Homework Question Here...
Neo is online now

# Calculate the sustainable growth rate for a firm with an 8%

### Customer Question

Calculate the sustainable growth rate for a firm with an 8% profit margin, an asset turnover of 1.25, a total debt ratio of 45%, and a plowback ratio of 65%. Assuming that the ROE remains constant, how large can the sustainable growth rate become?

Pls do not respone to this question, I finally figured out the answer.

Thanks
Submitted: 8 years ago.
Category: Homework
Expert:  Neo replied 8 years ago.
THIS ANSWER IS LOCKED!

You need to spend \$3 to view this post. Add Funds to your account and buy credits.
Customer: replied 8 years ago.
Sorry, I put a msg in my question that I had already figured it out. Why did you put [(1-(18.18%*65%)], I thought the formula for sustainable growth rate was just ROE x plowback ratio.