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As a firm grows, it must support increases in revenue with new investments in assets. The self - supporting growth model helps a firm assess

As a firm grows, it must support increases in revenue with new investments in assets. The self-supporting growth model helps a firm assess how rapidly it can grove while maintaining a balance between its cash outflows (increases in noncash assets) and inflows (funds resulting from increases in liabilities or equiby).Consider this case:Green Caterpillar Garden Supplies Inc. has no debt in its capital structure and has $150 million in assets. Its sales revenues last year were $45 milion with a net income of $5 million. The company distributed $1,85 million as dividends to its shareholders last year.What is the firm's self-supporting, growth rate? (Note: Do not round your intermediate calculations.)2.13-04.73%125%45.04Which of the following are assumptions of the self-supporting growth model? Check al that apply.The firm's total asset turnover ratio remains constant. The firm pays no dividends.The firm meintains a constant ratio of assets to equietThe firm's liabilities and equity must increaseat the same rate.

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