Sustainable Growth Rate, James Tompkins

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  • Опубликовано: 3 окт 2024
  • This is the second lecture in the "Advanced Corporate Finance" series in which I discuss a firm's sustainable growth rate. Imagine I have a lemonade stand that can only produce a given number of sales, and the sales in turn produce a given number of profits, and from the profits I pay out a given amount of dividends, and I finance the lemonade stand with a fixed ratio of debt and equity. If in addition to this, I only go to the external capital markets for debt capital, is my lemonade stand limited by the percentage which it can grow every year? In this lecture I illustrate the answer to this question and in in turn derive the formula to what is known as a firm's sustainable growth rate.

Комментарии • 38

  • @ramerousm4019
    @ramerousm4019 Год назад +1

    The best explanation on SGR I have seen. Great video!

  • @richardgordon
    @richardgordon Год назад

    That was a superb discussion on the capital structure and sustainable growth rate! Very interesting!

  • @TheYars07
    @TheYars07 3 года назад +1

    Extremely helpful!
    Explanation was helpful enough for ME - a person from an engineering background to understand the idea of g* without any accounting knowledge.
    Needed to learn this for a bridge course for an MBA I'm planning to pursue.
    Thanks a lot Professor!

  • @gamrboy100
    @gamrboy100 6 лет назад +1

    This is the best how to video I've seen, from any category, in a while. I can't get my professor to teach a second time so this video does that for me! Thanks Professor James👍🏻

  • @12ahungthanh1
    @12ahungthanh1 9 лет назад

    Whenever watching your video lectures, I always get more motivation to improve my finance knowledge. You provide the knowledge from the root of the tree. One again, thank you so much for your valuable time with us. Mr. James Tompkins' fan from Vietnam :)

    • @understandingfinance
      @understandingfinance  9 лет назад

      Thanh Hung Thanks so much! I am so happy the videos are useful to you.

  • @acupoftea8635
    @acupoftea8635 3 года назад

    one of the best things on the Internet

  • @oleglukianchikov3029
    @oleglukianchikov3029 9 лет назад +2

    Thank you very much for very clear explanation. It is so concise and informative, I don't think SGR could have been explained better.

  • @jamespaz4333
    @jamespaz4333 3 года назад

    Excellent explanation Sr. THANK YOU!!!!!

  • @pv0315
    @pv0315 8 лет назад

    Sir this is the best most clarifying and simplifying video on the subject. I have not found another video or resource on internet with such high level of clarity as this. People either tweak the formula as they wish or simply start from quoting one without bothering to explain the derivation. Many Thanks !!

  • @pramods3224
    @pramods3224 6 лет назад

    Thank You Prof. James for such an informative lecture.

  • @mahernasri1885
    @mahernasri1885 6 лет назад

    Thanks Professor James, appreciate your style.

  • @lailaqrochi2285
    @lailaqrochi2285 6 лет назад

    Great professor! Thank you :)

  • @MohammedIslamElshiekhElsmani
    @MohammedIslamElshiekhElsmani 2 года назад

    Interesting!!

  • @Clifffffffffford
    @Clifffffffffford 6 лет назад

    Thanks Prof.!

  • @uae12
    @uae12 7 лет назад

    thank you for this lecture!

  • @gupeace88
    @gupeace88 9 лет назад

    You are amazing! thanks alot!!!

  • @TILARFHT
    @TILARFHT 10 лет назад

    Perfect teaching, thanks

    • @understandingfinance
      @understandingfinance  10 лет назад

      Farshid Hoseini Thanks..and you are welcome.

    • @TILARFHT
      @TILARFHT 10 лет назад

      Understanding Finance Hi James. Thank you. Do you offer any book which teaches finance concepts instead of its mechanics. Like your method of teaching.

    • @understandingfinance
      @understandingfinance  10 лет назад

      Farshid Hoseini Hi Farshid, For Corporate Finance I think "Fundamentals of Corporate Finance" by Ross Westerfield and Ross is pretty good. In International Finance I have not found a book I am happy with. Also, if you are interested, on my "Understanding Finance" channel I have playlists of lectures in International Finance, Corporate Finance, and Advanced Corporate Finance. See ruclips.net/channel/UC4XJHGqb_WCUXQkHvKN5EwA I hope this is helpful.

    • @TILARFHT
      @TILARFHT 10 лет назад

      Understanding Finance Hi James, wow... so many thanks for your prompt response. I really enjoy the videos in your youtube channel and I gana watch them all one by one. hopefully I finish watching them soon. Thank you for the book that you introduced too.

    • @understandingfinance
      @understandingfinance  10 лет назад

      Farshid Hoseini Great and you are welcome. I hope it is a positive learning experience.

  • @FAREEYxo
    @FAREEYxo 9 лет назад

    Do you have a book you would recommend in terms of exercises to practise? I know you've mentioned a text book below.. does this have practise exercises too? Wish you had been my lecturer, instead of the one I had!

    • @understandingfinance
      @understandingfinance  9 лет назад

      FAREEYxo Thanks for your kind words. Anyway, I like "Fundamentals of Corporate Finance" written by Ross, Westerfield and Jordan and yes this text book has practice problems. Good luck.

  • @Page_max
    @Page_max 7 лет назад

    Thank you

  • @sadiqjhilam6492
    @sadiqjhilam6492 7 лет назад

    thanks a lot. subscribed

  • @basuassociates6091
    @basuassociates6091 7 лет назад

    Can you tell me the last assumption that was "only one condition change formula is different, "with an detailed example ,please it is my exam important subject

    • @understandingfinance
      @understandingfinance  7 лет назад +1

      I'm sorry but I prefer not to answer questions on RUclips because in part it robs others of the thought process. My apologies.