5. Union Fidelity Company (UFC) has the following ratios for the years 1999 through 2003: a. Calculate

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5. Union Fidelity Company (UFC) has the following ratios for the years 1999 through 2003:

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a. Calculate UFC's sustainable growth rate for each year.

b. Does UFC have a growth problem?

c. How did UFC cope with its sustainable growth problems?

d. Calculate UFC's sustainable growth rate in 2003 assuming the asset turnover increases to 0.4 and the financial leverage decreases to 1.6 times.

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