The Mji Mwema Ltd has the following ratios: Assets that increase spontaneously with sales - 1.8: Liabilities that increase spontaneously with sales - 0.45: profit margin = 15%; and dividend payout ratio - 30%. Sales last year were Tshs 900 million. Assuming that these ratios will remain constant, determine the maximum growth rate that the company can achieve without having to employ nonspontaneous external fun.

Answer rating: 100% (QA)

By formula External funds neededEFN Increase needed in an assetsSpontaneous i... View the full answer