Calculating the sustainable growth rate


1) Select 2 firms of interest from finance. google.com, money.msn.com, fiance.yahoo.com, and download their financial statements.
For each firm:

i) Write ROE, number of shares outstanding, dividends per share, and net income.

ii) Calculate the sustainable growth rate (g = b * ROE), where b equals plowback ratio.

iii) Compute total amount of dividends paid, dividend payout ratio (total dividends paid/net income), and plowback ratio (1 - dividend payout ratio).

iv) What does this information disclose about ROE for firms you chosen?

Make sure to comprise link for financial statements that you choose.

Requirements: Min Pages: 1

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Finance Basics: Calculating the sustainable growth rate
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