5. Sustainable growth 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 Fuzzy Button Clothing Company: Fuzzy Button Clothing Company has no debt in its capital structure and has $300,000,000 in assets. Its sales revenues last year were $210,000,000 with a net income of $3,500,000. The company distributed $105,000 as dividends to its shareholders last year. Given the information above, what is Fuzzy Button Clothing Company's sustainable growth rate? 0 0.0350816% 1.15% 0 3.2387822% O 0.2479565% Which of the following are assumptions of the sustainable (self-supporting) growth model? Check all that apply. O The firm uses all equity and no debt financing. 0 The firm must issue the same number of new common shares that it issued last year. O The firm pays out a constant proportion of its earnings as dividends. O The firm's total asset turnover ratio remains constant