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Author Question: Craftsman Inc., has a profit margin of 8, an asset turnover ratio of 2.3, a leverage ratio of 1.50 ... (Read 107 times)

dakota nelson

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on: Jul 11, 2018
Craftsman Inc., has a profit margin of 8, an asset turnover ratio of 2.3, a leverage ratio of 1.50 and a retention ratio of .60. What is the firm's sustainable growth rate?
 
  A) 3.13
  B) 8.70
  C) 16.56
  D) 46.00

Question 2

Which of the following forms of business organization has the greatest ability to attract new
  capital?
 
  A) sole proprietorship B) general partnership
  C) limited partnership D) corporation


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bassamabas

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Reply #1 on: Jul 11, 2018
Answer to Question 1

C
Explanation: C) Sustainable Growth = ROE  b = (8  2.3  1.5 )  .60 = 16.56

Answer to Question 2

D


dakota nelson

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Reply 2 on: Jul 11, 2018
YES! Correct, THANKS for helping me on my review

tkempin

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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