Use the data below to solve for the sustainable growth rates for 2011 to 2015.
| |
2011
|
2012
|
2013
|
2014
|
2015
|
|
Profit Margin
|
17
|
17
|
79.3
|
22.8
|
23.6
|
|
Retention Ratio
|
1
|
1
|
1
|
1
|
1
|
|
Asset Turnover
|
0.38
|
0.49
|
0.55
|
0.63
|
0.62
|
|
Financial Leverage
|
1.64
|
1.44
|
1.79
|
1.99
|
2
|
| |
|
|
|
|
|
|
Sustainable Growth Rate
|
|
|
|
|
|
|
Actual Growth Rate
|
26.1
|
40.1
|
43.5
|
40
|
26.3
|
What is the sustainable growth rate for each year? Based on your analysis of the sustainable growth rate between 2011 and 2015, what are your recommendations for the firm?