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MCS,MBA(IT), Pursuing PHD
Devry University
Sep-2004 - Aug-2010
Assistant Financial Analyst
NatSteel Holdings Pte Ltd
Aug-2007 - Jul-2017
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can someone help? Â please and thank youÂ
Baxter Inc. is in a fast growing industry, but doesn’t seem to be able to match its competitors’ growth rates. Selected financial information for Baxter is as follows ($000):
Sales $20,000 NI $1,000 Total Assets $10,000 Equity $8,000 Annual dividend $700.Research has revealed that the average firm in Baxter’s industry pays out 10% of its earnings in dividends, earns 4 cents after tax on every sales dollar, has an equity multiplier of 3.0, and a total asset turnover of 1.9
Use a sustainable growth rate analysis in the following table to determine the source(s) of Baxter’s growth problems
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gs =
Retention Ratio
Return on Sales
Total Asset Turnover
Equity Multiplier Industry Baxter
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