Explore BrainMass

Explore BrainMass

    Sustainable Growth: Total Asset Turnover

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Assuming the following ratios are constant, what is the sustainable growth rate?

    Total Asset Turnover = 1.80
    Profit Margin = 7.2%
    Equity Multiplier = 2.15
    Payout Ratio = 30%

    I am just not understanding how to do this. The book shows a ROE #, but I don't know how to get that.

    © BrainMass Inc. brainmass.com March 4, 2021, 7:53 pm ad1c9bdddf


    Solution Summary

    This solution explains how to achieve sustainable growth.