# Company growth rate related problem

Aug 2nd, 2016
Studypool Tutor
Price: \$5 USD

Tutor description

Solution to: You've collected the following information about odyssey Inc

Word Count: 81
Showing Page: 1/2
Question 4A)Retention ratio:b= 1 \$9,300 / \$14,800b= 0.3716ROE (Return on Equity)ROE= \$14,800 / \$51,000ROE= 0.2902, or 29.02%Sustainable growth rate= (ROE b) / [1 (ROE b)]Sustainable growth rate=[0.2902(0.3716)] / [1 0.2902(0.3716)]Sustainable growth rate= 0.1209, or 12.09%B)New Total Assets = 1.1209(\$68,000 + 51,000) = \$133,384.62New Total Debts = [Debts / (Debts + Equity)](Total assets)= [\$68,000 / (\$68,000 + 51,000)](\$133,384.62)= \$76,219.78Additional borrowing = \$76,219.78 68,000= \$8,219.78C)(Return on Assets) ROA = \$14,800 / (\$68,000 + 51,000)ROA =

## Review from student

Studypool Student
" Was sceptical because of all the poor reviews but I was desparate. Turned out pretty well, so I'm pleasantly surprised. "

1823 tutors are online

### Other Documents

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors