2. Assume that the and growth rates are 4% and 9%, respectively. First show in the table below the funding for growth rates of 4% and 9 %.

Consider CRE (contribution to retained earnings) (internal equity), bond issues (external debt) and equity issues (external equity) as the types of funding. Next, what types of funding are used for the following three growth rates (2%, 6%, 12%)? Which of these situations are considered to be: capital consumption; a cash cow? Comment on the leverage for growth rates of 2%, 6% and 12%.

	2%	4%	6%	9%	12%
Internal Equity
Debt Equity
External Equity
Leverage

2. Assume that the g, (internal and gs (sustainable) growth rates are 4% and 9%, respectively. First show in the table below the funding for growth rates Consider CRE (contribution to retained earnings)(NI - Div) (internal equity), bond issues (external debt) and equity issues (external equity) as the types of funding. Next, what types of funding are used for the following three growth rates (2%, 6%, 12%)? Which of these situations are considered to be: capital consumption; a cash cow? Comment on the leverage for growth rates of 2%, 6% and 12%. 4% 6% 9% Internal Equity Debt Equity External Equity Leverage