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Any help would be amazing, thank you! 5. Sustainable growth Aa Aa E As a firm grows, it must support increases in revenue with new

Any help would be amazing, thank you!image text in transcribed

5. Sustainable growth Aa Aa E 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 $150,000,000 in assets. Its sales revenues last year were $60,000,000 with a net income of $4,000,000. The company distributed $200,000 as dividends to its shareholders last year. Given the information above, what is Cold Duck Manufacturing Inc.'s sustainable growth rate? O 1.88% 2.60% 2.88% 0.13% 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. Common stock is the firm's only form of equity. The firm maintains a constant ratio of liabilities to equity. The firm must issue the same number of new common shares that it issued last year

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