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?