Weatherfbrd Industries Inc. has the following ratios: AVS„ = 1.6; l.VS,, = 0.4; profit margin =

0.10; and retention ratio = 0.55. or 55 percent. Sales last year were S100 million. Assuming that these ratios will remain constant, use the AFX formula to determine the maximum growth rate Weatherfbrd can achieve without having to employ nonspontaneous external funds.

AppendixLO1