To calculate the Sustainable Growth Rate (SGR) for 2024, the formula is:

$SGR = \text{ROE} \times \text{Retention Ratio}$

Where:

• ROE (Return on Equity) is calculated as: $\text{ROE} = \frac{\text{Net Income}}{\text{Total Equity}}$
• Retention Ratio is: $\text{Retention Ratio} = 1 - \frac{\text{Dividends}}{\text{Net Income}}$

From the uploaded data:

1. Net Income (FY23) = $1,198,396
2. Total Equity (FY23) = $5,548,916
3. Dividends (FY23) = $500,000

Step 1: Calculate ROE

$ROE = \frac{1,198,396}{5,548,916} = 0.2160 \, \text{(or 21.60\%)}$

Step 2: Calculate Retention Ratio

$Retention Ratio = 1 - \frac{500,000}{1,198,396} = 1 - 0.4173 = 0.5827 \, \text{(or 58.27\%)}$

Step 3: Calculate SGR

$SGR = 0.2160 \times 0.5827 = 0.1258 \, \text{(or 12.58\%)}$

Final SGR for 2024:

The Sustainable Growth Rate (SGR) for 2024 is 12.58%.

Would you like further clarifications, or should I assist with related calculations or forecasts?

Related Questions:

1. What is the importance of SGR for financial planning?
2. How does dividend policy impact the sustainable growth rate?
3. Can SGR change if equity structure shifts in 2024?
4. How would changes in profitability (ROE) affect future SGR?
5. What strategies can increase a company’s SGR?

Tip: To maintain a higher SGR, a company can reinvest more earnings by reducing dividends or enhancing profitability through cost optimization or revenue growth strategies