The Barnsdale Corporation has the following ratios: A0/S0 = 1.6; L0/S0 = 0.4; profit margin = 0.10;

Question:

The Barnsdale has the following ratios: A0*/S0 = 1.6; L0*/S0 = 0.4; profitmargin = 0.10; and payout ratio = 0.45, or 45%. Sales last year were $100 million.Assuming that these ratios will remain constant, use the AFN equation to determine thefirm's self-supporting growth rate-in other words, the maximum growth rate Barnsdalecan achieve without having to employ nonspontaneous external funds.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...