To calculate sustainable growth rate without using return on equity, the analyst needs the:
A)profit margin.
B)payout ratio.
C)debt-to-equity ratio.
D)total asset turnover.
E)All of the above.

Question

Quizplus · Accepted Answer

The sustainable growth rate can be calculated using the formula:SGR = (PM * AT * ROA) / (1 - PR)Where:PM = Profit marginAT = Asset turnoverROA = Return on assetsPR = Payout ratioTherefore, to calculate the sustainable growth rate without using return on equity, the analyst needs the profit margin, asset turnover, and payout ratio.

To Calculate Sustainable Growth Rate Without Using Return on Equity