Gujarat Corporation doubled its shareholders’ equity during the year 2017. Gujarat did not issue any new equity, repurchase any equity, or pay out any dividends during the year. What is Gujarat’s sustainable growth rate for 2017?
The sustainable growth rate is about the overall growth rate of a company or a firm in a specific year. Sustainable growth is strongly related to issuing new equity or issuing new equity and dividends payout. Gujarat Corporation doubled its equity and did not issue any new equity or repurchased, which makes its sustainable growth rate of 100%.
