You are given the following information on Kaleb's Heavy Equipment: Profit margin 6.5 % Capital intensity ratio .74 Debt-equity ratio .8 Net income $ 78,000 Dividends $ 16,000 Calculate the sustainable growth rate.

14.36%

Explanation:

The sustainable growth rate will be calculated thus:

Firstly, we will calculate the return on equity(ROE) which will be:

= Profit margin × (1/Capital intensity ratio) × (1 + Debt equity ratio)

= 6.5% (1/0.74) × (1 + 0.8)

= 0.065 × 1.35 × 1.8

= 0.158

Then, we'll calculate the plowback ratio which will be:

= 1 - (16000/78000)

= 1 - 0.2051

= 0.7949

Therefore, the growth rate will be:

= (ROE × Plowback ratio) / [1 - (ROE × Plowback ratio)]

= (0.158 × 0.7949) / [1 - (0.158 × 0.7949)]

= 0.1256 / 0.8744

= 0.1436

= 14.36%

The sustainable growth rate is 14.36%

c

explanation:

c because the item on a bank statement is also referred to as an account statement. in addition, it provides the beginning balance, ending balance, statement date, transaction date for each transaction, payee, customer name and address, statement period, the account holder's account number, and the bank's customer service number

answerjointly by the fed and by the behavior of individuals who hold money and of banks in which money is held;