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4. Sustainable growth Aa Aa E As a firm grows, it must support increases in revenue with new investments in assets. The self-supporting growth model

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4. Sustainable growth Aa Aa E 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: Bohemian Manufacturing Company has no debt in its capital structure and has $300 million in assets. Its sales revenues last year were $90 million with a net income of $10 million. The company distributed $1.95 million as dividends to its shareholders last year. What is the firm's self-supporting growth rate? O 4.15% 0.65% 4.25% 2.76% Which of the following are assumptions of the self-supporting growth model? Check all that apply. The firm uses all equity and no debt financing. The firm's total asset turnover ratio remains constant. The firm maintains a constant net profit margin. The firm maintains a constant ratio of liabilities to equity

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