Sustainable Growth Rate

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Posted by Dinesh on

The sustainable growth rate is the maximum growth rate which company can achieve keeping their capital structure intact and can sustain it without any additional debt requirement or equity infusion.

The basic formula for ROE is ROE = Net Income / Equity.

Sustainable Growth Rate Calculator

Calculate Sustainable Growth Rate
Net Income:
Dividend Payout Ratio:
Owner's Equity:
Sustainable Growth Rate :

Formula:

Sustainable Growth Rate = ( Net Income x (1 - Dividend Payout Ratio) ) / Owner's Equity

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