5. Sustainable growth Aa Aa As a firm grows, it must support increases in revenue with new investments in assets. The self-supporting, or sustainable, 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 the following case of Cold Duck Manufacturing Inc. Cold Duck Manufacturing Inc. has no debt in its capital structure and has $250,000,000 in assets. Its sales revenues last year were $150,000,000 with a net income of $3,000,000. The company distributed $165,000 as dividends to its shareholders last year. Given the information above, what is Cold Duck Manufacturing Inc.'s sustainable growth rate? 0 0.33% 0 1.28% 0 0.07% o 1.15% Which of the following are assumptions of the sustainable (self-supporting) growth model? Check all that apply. The firm's total asset turnover ratio remains constant. The firm will not issue any new common stock next year. The firm's liabilities and equity must increase at the same rate The firm pays no dividends