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Eight Ball Sporting Goods - Growth Rate

A. Use the information attached to calculate the actual and sustainable growth rate for each year.
Chapter 4 Problem 8 -- Eight Ball Sporting Goods
a. Use the information below from Eight Ball's annual financial statements to calculate the actual and sustainable growth rate for each year.

Eight Ball Sporting Goods (\$ in thousands)
1999 2000 2001 2002 2003 2004
Sales 960.70 1,186.46 1,436.56 1,695.93 2,058.89 2,234.19
Net income - 96.34 56.08 82.42 98.52 61.15
Total assets - 1,116.76 1,342.92 1,376.48 1,592.17 2,256.59
Equity 736.77 857.74 903.17 959.52 1,055.14 1,112.86
Dividends - - - 1.82 3.97 4.71

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a. Use the information below from Eight Ball's annual financial statements to calculate the actual and sustainable growth rate for each year.

Eight Ball Sporting Goods (\$ in ...

Solution Summary

This solution is comprised of calculation to calculate the actual and sustainable growth rate for each year.

\$2.19