Scribd Logo
Upload

Welcome to Scribd!

  • 13 views

    MGT 2301 (Sustainable Growth Rate) (060120a) (Quercus) - 2

    Uploaded by

    Daniel Gao
    The Sustainable Growth Rate (SGR) model is used to determine the maximum growth rate a firm can sustain without issuing new equity or drastically changing its target debt to equity ratio. A firm's SGR is calculated based on its retention ratio (the proportion of net income retained rather than paid out as dividends) and its return on equity (ROE). The higher a firm's retention ratio and ROE, the higher its sustainable growth rate will be according to the SGR model.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content

    You might also like

    MGT 2301 (Sustainable Growth Rate) (060120a) (Quercus) - 2

    Uploaded by

    Daniel Gao
    13 views1 page
    The Sustainable Growth Rate (SGR) model is used to determine the maximum growth rate a firm can sustain without issuing new equity or drastically changing its target debt to equity ratio. A firm's SGR is calculated based on its retention ratio (the proportion of net income retained rather than paid out as dividends) and its return on equity (ROE). The higher a firm's retention ratio and ROE, the higher its sustainable growth rate will be according to the SGR model.

    Original Description:

    Original Title

    MGT 2301 (Sustainable Growth Rate) (060120a) (Quercus)_2

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The Sustainable Growth Rate (SGR) model is used to determine the maximum growth rate a firm can sustain without issuing new equity or drastically changing its target debt to equity ratio. A firm's SGR is calculated based on its retention ratio (the proportion of net income retained rather than paid out as dividends) and its return on equity (ROE). The higher a firm's retention ratio and ROE, the higher its sustainable growth rate will be according to the SGR model.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    13 views1 page

    MGT 2301 (Sustainable Growth Rate) (060120a) (Quercus) - 2

    Uploaded by

    Daniel Gao
    The Sustainable Growth Rate (SGR) model is used to determine the maximum growth rate a firm can sustain without issuing new equity or drastically changing its target debt to equity ratio. A firm's SGR is calculated based on its retention ratio (the proportion of net income retained rather than paid out as dividends) and its return on equity (ROE). The higher a firm's retention ratio and ROE, the higher its sustainable growth rate will be according to the SGR model.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    of 1

    Sustainable Growth Rate Example (G.

    Donaldson 1984)

    You might also like