Deprey, Incorporated, had equity of $170,000 at the beginning of the year. At the end ofthe year, the company had total assets of $325,000. During the year, the company soldno new equity. Net income for the year was $36,000 and dividends were $4,800.a. What is the sustainable growth rate for the company? (Do not round intermediatecalculations and enter your answer as a percent rounded to 2 decimal places, e.g.,32.16.)b. What is the sustainable growth rate if you use the formula ROE band beginning ofperiod equity? (Do not round intermediate calculations and enter your answer as apercent rounded to 2 decimal places, e.g., 32.16.)c. What is the sustainable growth rate if you use end of period equity in this formula?(Do not round intermediate calculations and enter your answer as a percentrounded to 2 decimal places, e.g., 32.16.)a. Sustainable growth rateb. ROE x b (using beginning of period equity)c. ROE x b (using end of period equity)%%%

When the average value of equity is measured, and the net income is divided by it, the resulting…

Deprey, Incorporated, had equity of $170,000 at the beginning of the year. At the end of the year, the company had total assets of $325,000. During the year, the company sold no new equity. Net income for the year was $36,000 and dividends were $4,800. a. What is the sustainable growth rate for the company? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the sustainable growth rate if you use the formula ROE x band beginning of period equity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. What is the sustainable growth rate if you use end of period equity in this formula? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Sustainable growth rate b. ROE x b (using beginning of period equity) c. ROE x b (using end of period equity) % % %

Deprey, Incorporated, had equity of $170,000 at the beginning of the year. At the end of the year, the company had total assets of $325,000. During the year, the company sold no new equity. Net income for the year was $36,000 and dividends were $4,800. a. What is the sustainable growth rate for the company? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the sustainable growth rate if you use the formula ROE x band beginning of period equity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. What is the sustainable growth rate if you use end of period equity in this formula? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Sustainable growth rate b. ROE x b (using beginning of period equity) c. ROE x b (using end of period equity) % % %

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter7: Analysis Of Financial Statements

Section: Chapter Questions

Problem 12P: The Kretovich Company had a quick ratio of 1.4, a current ratio of 3.0, a days’ sales outstanding of...

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