Back to Assignment Attempts 0.3 0.5 Keep the Highest 0.5/2 5. Sustainable growth As a firm grows, it must support increases in revenue with new investments in assets. The self-supporting, or sustainable, growth model helps a firm assess how rapidly it can grow, while maintaining a balance between its cash outflows (increases in noncash assets) and inflows (funds resulting from increases in liabilities or equity). Consider the following case of Blue Elk Manufacturing: Blue Elk Manufacturing has no debt in its capital structure and has $150,000,000 in assets. Its sales revenues last year were $45,000,000 with a net income of $1,500,000. The company distributed $195,000 as dividends to its shareholders last year. Given the information above, what is Blue Elk Manufacturing's sustainable growth rate? O 0.13% 0 4.76% O 2.12% O 0.88% Which of the following are assumptions of the sustainable (self-supporting) growth model? Check all that apply. The firm maintains a constant ratio of liabilities to equity. Common stock is the firm's only form of equity. The firm maintains a constant net profit margin The firm's liabilities and equity must increase at the same rate