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2) Consider the effect of different growth rates on EFN. Calculate sustainable growth rate (g*) and internal growth rate (g i ) and compare to
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- Consider the effect of different growth rates on EFN. Calculate sustainable growth rate (g*) and internal growth rate (gi) and compare to planned sales growth rate (g). (sales is expected to grow to 555 Million in 1996 in case that's relevant)
- Consider the effect of the above growth rates on the capital structure (D/E ratio).
- Determine the options that Clarkson Lumber faces or should consider.
- Make a recommendation based on your analysis.
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