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    Sustainable growth rate

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    The MBI Company does not want to grow. The company's financial management believes it has no positive NPV projects. The company's operating financial characteristics are:

    Profit margin = 10%
    Assets-sales ratio = 150%
    Debt-equity ratio = 100%
    Dividend-payout ratio = 50%

    Calculate the sustainable growth rate for the MBI Company (this should be completed in Excel).

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    Solution Summary

    The solution explains how to calculate the sustainable growth rate for the MBI Company.