Question

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

Answer 1

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

Step-by-step explanation:

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