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= = 2. HNTR Industries has the following ratios: Ag*/S= 1.6; Lo*/S, = 0.4; profit margin = .10 and the payout ratio is 45%. Sales

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= = 2. HNTR Industries has the following ratios: Ag*/S= 1.6; Lo*/S, = 0.4; profit margin = .10 and the payout ratio is 45%. Sales last year were $100 million. Assuming that those ratios remain constant, use the AFN equation to determine the maximum growth rate (the sustainable growth rate) HNTR Industries can achieve without having to use (non- spontaneous) external funds

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