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
This solution explains how to achieve sustainable growth.