A firm’s profit margin is 24%, and its asset turnover ratio is .5. It has no debt, has net income of $15 per share, and pays dividends of $6 per share. What is the sustainable growth rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.)

    Retained rights per portion-out = $15 – $6 = $9

    Plowback bearing = $9/$15 = 3/5

    Return on equity = Profit Margin * Asset turnover bearing = 24% * 0.5 = 12%

    Sustainable development objurgate = Plowback bearing * Return on equity

    = 12% * 3/5 = 7.2%