Polaris Industries produces a wide range of outdoor leisure vehicles i

Polaris Industries produces a wide range of outdoor leisure vehicles including all-terrain vehicles (ATV’s), motorcycles, and snowmobiles. Use the financial information in the table to calculate Polaris’ maximum sustainable growth rate.

Selected Ratios
Polaris Industries Inc
As of December 31, Year 5
ROE 38.76%
ROA 18.63%
Net Profit Margin 7.51%
Total Asset Turnover 2.48
Dividend Payout Rate 20%

A) 8.1%
B) 17.5%
C) 22.9%
D) 44.9%
E) 63.3%

ANSWER

D