Question: help ASAP please!! sustainable growth As a firm grows, it must support increases in revenue with new investments in assets. The self-supporting growth model helos
As a firm grows, it must support increases in revenue with new investments in assets. The self-supporting growth model helos a firm asseks how apidly it can grow, while maintaining a balance between its cash outflows (increases in noncash assets) and inflows (funds resulting from ificreases in (abilities or equity). Consider this case: Green Caterpiliar Garden Supplies Inc, has no debt in its capital structure and has $150 miltion in assets. Its sales revenues last year were 575 million with a net income of $5 million. The company distributed $1.60 million as dividends to its shareholders last year. What is the firm's self-supporting, growth rate? (Note: Do not round your intermediate calculations.) 1.08% 1.00% 4.60% 2.32% Which of the following are assumptions of the self-supporting growth model? Check all that apply. The firm's liabitities and equity must increase ot the same rate. The firm's total asset tumover ratio remains constant. The firm pays no dividends: The firm will not issue any new common stock next year
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