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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 how rapldly

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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 how rapldly 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 this case: Bohemian Manufacturing Company has no debt in its capital structure and has $150 million in assets. its sales revenues last year were $90 million with a net income of $5 million. The company distributed $1.30 million as dividends to its shareholders last year. What is the firm's self-supporting, growth rate? (Note: Do not round your intermediate calculations.) 0.74% 2.53% 0.87% 4,38% Which of the following are assumptions of the seif-supporting growth model? Check all that apply. The firm pays no dividends. The firm pays out a constant proportion of its earnings as dividends. The firm's total asset turnover ratio remains constant. The firm will not issue any new corrmon stock next year. Western Gas a Eiectric Co. (WG8E) had sales of $1,720,000 last year on fixed assets of $380,000, Given that WGEE's fixed assets were belng used at only 93% of capacity, then the firm's fixed asset tumover ratio was x. (Note: Round your answer to two decimal places.) How much sales could Western Gas a Electric Co. (WGSE) have supported with its current level of fixed assets? (Note: Round your answer to the nearest whole number.) $1,941,935$2,126,881$1,572,043$1,849,462 When you consicer that WGbE's fixed assets were being underused, what should be the firms target fixed assets to sales ratio? (Note: Round your answer to two decimal places.) 23.63% 21.58% 17.47% 20.55% Suppose WGat is forecasting sales gromth of 22% for this yean If existing and new fixed assets are used at 100% capocity, the firms expected fixedatsets turnover ratio for this year is (Note: Round your answer to two decimal placeli)

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