A firm's profit margin is 10 percent and its asset turnover ratio is .6. It has no debt, has net income of $10 per share, and pays dividends of $4 per share. What is the sustainable growth rate?© BrainMass Inc. brainmass.com March 4, 2021, 7:03 pm ad1c9bdddf
Sustainable Growth rate(SGR) = Return on Equity X Retention Ratio/(1- (ROEXretention ratio))
Return on Equity = Net ...
The solution explains how to calculate the sustainable growth rate.