Question: EFN and Internal Growth Redo Problem 25 using sales growth rates of 15 and 25 percent in addition to 20 percent illustrate graphically the relationship

EFN and Internal Growth Redo Problem 25 using sales growth rates of 15 and 25 percent in addition to 20 percent illustrate graphically the relationship between EFN and the growth rate, and use this graph to determine the relationship between them. At what growth rate is the EFN equal to zero? Why is this internal growth rate different from that found by using the equation in the text?

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The pro forma income statements for all three growth rates will be We will calculate the EFN for the 15 percent growth rate first Assuming the payout ... View full answer

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