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A firm has net income = $20 million from sales = $150 million. The firm'sDetx = $100 million, and the book equity = $100 million

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A firm has net income = $20 million from sales = $150 million. The firm'sDetx = $100 million, and the book equity = $100 million What are the firm's If the firm wants to maintain its current Asset/Equity ratio, along with a payout ratio (POR = dividends/Net income) of 30% of Net income, what is the firm's sustainable growth rate? The firm is committed to keeping its Debt/Equity ratio constant in the future, If the firm's actual growth rate in sales and assets is expected to be 8% per year over the next 5 years, should the firm's shareholders expect to see an increase or decrease in the firm's payout ratio? Explain

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