A firm is projecting growth of 14.4% next year. Management has publicized the following goals:

- Finance 50% of assets with debt

- Retain 75% of earnings

- Maintain a net margin of 8%

- Avoid the issuance of new equity

- Keep the firm's asset turnover constant at 1.2

Can the firm meet the stated goals and growth target? Why or why not?

Yes, the goals are consistent

No, because the forecast grow is not consistent with the other goals

No, because the firm will not be able to increase sales by 14.49

No, because the firm's sales will increase by more than 14 496