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2. LA Kitchens Corporation, described in 1 above, is interested in estimating its sustainable growth rate. Last year, revenues were $10 million; net profit was

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2. LA Kitchens Corporation, described in 1 above, is interested in estimating its sustainable growth rate. Last year, revenues were $10 million; net profit was $500,000; investment in assets was $7.5 million; payables and accruals were $1 million; and stockholder's equity at the end of the year was $4.5 million (i.e. beginning- of-year equity of $4 million plus retained profits of $500,000). The venture did not pay out any dividends and does not expect to pay dividends for the foreseeable future. A. Estimate the sustainable sales growth rate for LA Kitchens based on the information provided in this

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