Delta has achieved an average return on equity of 36.5% for the last five years. If Delta generates a 17.2% net profit margin on sales of $3 billion and pays no dividends, what is Delta’s sustainable growth rate?

1 answer

http://en.wikipedia.org/wiki/Sustainable_growth_rate

No dividends makes the math easy.

SGR=ROE/(1-dividend payout ratio)
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