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Abbreviated financial statements for Archimedes Levers are shown in the table below. Assume sales and expenses increase by 1 1 % in 2 0 2
Abbreviated financial statements for Archimedes Levers are shown in the table below. Assume sales and expenses increase by in
and all assets and liabilities increase correspor,dingly.
a If the payout ratio is set at and no external debt or equity is to be issued, what is the maximum possible growth rate for
Archimedes?
b If the payout ratio is set at and the firm maintains a fixed debt ratio but issues no equity, what is the maximum possible
growth rate for Archimedes?
Note: For all requirements, do not round intermediate calculations. Enter your answers as a percent rounded to decimal places.
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