Growth of the Firm Calculation Flashcards
1
Q
Sustainable Growth Rate (SGR)
A
ROE x (1 - payout ratio)
2
Q
Return on Equity (ROE)
A
Net Income/Equity
3
Q
DuPont Equation for ROE
A
(Net Income/Sales) x (Sales/Total Assets) x (Total Assets/Equity)
4
Q
Dupont Terms for ROE
A
Net Profit Margin x Asset Turnover x Leverage Multiplier
5
Q
SGR
A
Net Profit Margin x Asset Turnover x Leverage Multiplier x (1 - payout ratio)
