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    Sustainable Growth Rate

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    Trying to find the sustainable growth rate assuming the ratios below are constant.

    Total asset turnover = 1.90

    Profit margin = 7.6%

    Equity multiplier = 1.40

    Payout ratio = 40%.

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    https://brainmass.com/business/finance/calculating-sustainable-growth-rate-163591

    Solution Preview

    Trying to find the sustainable growth rate assuming the ratios below are constant.

    Total asset turnover = 1.9

    Profit margin        = 7.60%

    Equity multiplier    = 1.4

    Payout ratio         = ...

    Solution Summary

    Sustainable Growth Rate is calculated given the data on profit margin, equity multiplier, payout ratio.

    $2.49

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