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

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4. Sustainable growth As a firm grows, it must support increases in revenue with new investments in assets. The self-supporting urowth model belps a firm assess how rapidly it can orow, while maintaining a balance between its cash outtlows (increases in noncash assets) and inflows (funds resulting from increases i liabilities or equity). Consider this case: Bohemlan Manufacturing Company has no debt in its captal structure and has $150 million in assets. Its sales revenuns tast year were $90 million with a net income of $5 million. The compary distributed $1.30 million as dividends to its shareholders tast year. What is the firm's self-supportino, growth rate? (Note: Do not round your incrmediate calculations.) 0,74% 253% Which of the followting are assumpticens of the self-supporting orawti medrly check all thut apph The firm's liabalities and equity mest increase at the same rate. The firm pays out a constant proportien of iss earnings as dividends. The firm pars no dividends: The firm's total asset turnoves ratio temains constant

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