Based on the following information, calculate the sustainable growth rate for Kaleb’s Heavy Equipment:      Profit margin 7.2%     Capital intensity ratio .63       Debt-equity ratio .55       Net income $32,000       Dividends $16,000

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter13: Capital Structure Concepts
Section: Chapter Questions
Problem 6P
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Based on the following information, calculate the sustainable growth rate for Kaleb’s Heavy Equipment:
 
 
  Profit margin 7.2%  
  Capital intensity ratio .63    
  Debt-equity ratio .55    
  Net income $32,000    
  Dividends $16,000    
 
 

 

 
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