The Green Giant has a 5 percent profit margin and a 34 percent dividend payout ratio. The total asset turnover is 1.6 times and the equity multiplier is 1.5 times. What is the sustainable rate of growth? Multiple Choice O 16.32% 12.00% 2.40% 8.60% 12.90%
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- Stop and Go has a 4.5 percent profit margin and a 15 percent dividend payout ratio. The total asset turnover is 1.6 and the financial leverage is 1.60. What is the sustainable rate of growth? O a. 9.13 percent O b. 9.89 percent O c. 10.85 percent O d. 9.54 percent9) The Green Giant has a 5 percent profit margin and a 40 percent dividend payout ratio. The total asset turnover is 1.2 times and the equity multiplier is 1.5 times. What is the sustainable rate of growth?Sustainable Growth Rate The Raindrop Company has an ROE of 12.1 percent and a payout ratio of 25 percent.a. What is the company’s sustainable growth rate?b. Can the company’s actual growth rate be different from its sustainable growth rate? Why or why not?c. How can the company increase its sustainable growth rate?
- The Green Giant has a 7 percent profit margin and a 61 percent dividend payout ratio. The total asset turnover is 1.4 and the equity multiplier is 1.6. What is the sustainable rate of growth?6. Is it possible to value the company below using the constant growth model? Why or why not? Explain. rf=5% rm 17% beta=0.8 DO = $1 g=50%Calculate the sustainable growth rate given the following information: debt/equity ratio = 60%; profit margin = 5%; dividend payout ratio = 50%; capital intensity ratio = 1. Multiple Choice 4.17% 8.26% 7.26% 4.26% 6.26%
- Assume the following ratios are constant. Total asset turnover 1.49 Profit margin 8.7% Equity multiplier 1.6 Payout ratio 55% What is the sustainable growth rate?Assume the following ratios are constant. Total asset turnover Profit margin Equity multiplier Payout ratio = || || || || Sustainable growth rate = = 2.27 5.5% 1.74 What is the sustainable growth rate? Note: Do not round intermediate calculations and enter your answer as a percent 38% %What is the sustainable growth rate if the ROE is 17% and the payout ratio is 25%. a. 12.79% b. 8.00% c. 14.61% d. 8.62%
- Assume the following ratios are constant: Profit margin Total asset turnover 2.5 5.2% Equity multiplier 1.3 Payout ratio 22% What is the sustainable growth rate? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., Answer is complete but not entirely correct. Sustainable growth rate 1.09 %Assume the following ratios are constant: Total asset turnover Profit margin Equity multiplier Payout ratio 2.5 6.5% 1.6 20% What is the sustainable growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Sustainable growth rate %What is the sustainable growth rate if the ROE is 17% and the payout ratio is 25%. а. 12.79% b. 8.00% с. 14.61% d. 8.62%