NARRBEGIN: Kooshy

-Using ratios derived from the income statement and balance sheet above,what is Kooshy Company's sustainable growth rate?

Question

NARRBEGIN: Kooshy
  
-Using ratios derived from the income statement and balance sheet above,what is Kooshy Company's sustainable growth rate?

Quizplus · Accepted Answer

The sustainable growth rate (SGR) is calculated using the formula SGR = ROE * (1 - dividend payout ratio), where ROE is the Return on Equity. Without specific numbers from Kooshy Company's income statement and balance sheet, we cannot calculate the exact figure here. However, given the choices, if B) 17.7% is marked as correct, it implies that based on the provided financials (not visible in the question), the calculation for Kooshy Company's sustainable growth rate using the formula and the company's specific ROE and dividend payout ratio results in 17.7%.

NARRBEGIN: Kooshy -Using Ratios Derived from the Income Statement and Balance Sheet