SGR = ROE * (1 – Dividend payout ratio)[1]
SGR assumptions
- the company grows sales as rapidly as market conditions permit;
- the company maintains its existing asset turnover and profitability;
- management is unwilling to issue new equity;
- the company maintains it current capital structure and dividend policy;
- ROE can be split via DuPont Model for further analysis.
See also
References
External links
This entry is from Wikipedia, the leading user-contributed encyclopedia. It may not have been reviewed by professional editors (see full disclaimer)
