Redo Problem 26 using sales growth rates of 30 and 35 percent in addition to 20 percent.
Question:
Redo Problem 26 using sales growth rates of 30 and 35 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 sustainable growth rate different from that found by using the equation in the text?
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Sales 743000 Assets Liabilities and owners equity Costs 578000 Current assets Current liabilities Ot...View the full answer
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Related Book For 
Fundamentals of corporate finance
ISBN: 978-0078034633
10th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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