Law Specialists’ sustainable growth rates (these are the product of the first four rows of financial information):
2017
2018
2019
2020
2021
Sustainable growth rate (%)
32.37
16.84
0.26
0.84
13.93
Calculate Law Specialists’ sustainable growth rate in each year.
Comparing the company’s sustainable growth rate with its actual growth rate in sales, what growth problems did the company face over this period?
Please refer to the selected financial information for Law Specialists, Inc. above. Law Specialists paid its first dividends in 2021. As an analyst, assess the company’s decision to pay dividends.