If Creative Analysis, Inc. decides to maintain a constant debt-equity ratio, what rate of growth can they maintain?

Question

Frankie

Business

11 April, 12:01

If Creative Analysis, Inc. decides to maintain a constant debt-equity ratio, what rate of growth can they maintain?

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Answers (1)

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Lassie · Answer 1

Answer: If Creative Analysis, Inc. decides to maintain a constant debt-equity ratio, what rate of growth can they maintain? 4.82percent

Explanation:

Sustainable growth = {[$540 / ($3,000 + $1,700) ] [$216 / $540]} / {1 {[$540 / ($3,000 + $1,700) ] [$216 / $540]}} =.04817 = 4.82 percent