How to Calculate Sustainable Growth Rate

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Mar 8, 2008, 12:54 PM

Fess1076

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Join Date: Mar 2008

Posts: 1

How to Calculate Sustainable Growth Rate

How do you calculate Sustainable Growth Rate when you have:

Total Assets = $600
Equity = $400
Net Income = $150
Dividends = $45
Earnings Retained = $105

I calculated the plowback ratio to be .5714 based on dividends and earnings retained.

I calculated ROE to be .375 based on Net Income and Equity.

However I am not coming up with the right answer. Can anyone help?

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