4. Sustainable growth Aa Aa As a firm grows, it must support increases in revenue with new investments in assets. The self-supporting growth model helps a firm assess how rapidly it can grow, while maintaining a balance between its cash outflows (increases in noncash assets) and inflows (funds resulting from increases in liabilities or equity). Consider this case: Cold Duck Manufacturing Inc. has no debt in its capital structure and has $250 million in assets. Its sales revenues last year were $75 million with a net income of $5 million. The company distributed $1.10 milion as dividends to its shareholders last year. What is the firm's self-supporting growth rate? 0 2.50% 0 2.10% 0 0.44% 1.59% Which of the following are assumptions of the self-supporting growth model? Check all that apply. The firm's liabilities and equity must increase at the same rate. X The firm maintains a constant net profit margin. The firm maintains a constant ratio of assets to equity. Common stock is the firm's only form of equity