Q9 Networks is a leading provider of outsourced data center infrastruc

Q9 Networks is a leading provider of outsourced data center infrastructure such as web-servers and data storage. Use the financial information in the table to calculate Q9’s maximum sustainable growth rate.

Selected Ratios
Q9 Networks Year 5
ROE 0.10%
ROA 0.09%
Net Profit Margin 0.27%
Total Asset Turnover 0.33
Dividend Payout Rate 0%

A) 0.09%
B) 0.10%
C) 0.11%
D) 0.12%
E) 0.13%

ANSWER

B