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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 rapidly
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 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: Green Caterpillar Garden Supplies Inc. has no debt in its capital structure and has $300 million in assets. Its sales revenues last year were $150 million with a net income of $10 million. The company distributed $1.25 mllion as dividends to its shareholders last year. What is the firm's self-supporting growth rate? 3.9090 0 1.32% o 0.42% 3.01% Which of the following are assumptions of the self-supporting growth model? Check all that apply. The firm maintains a constant ratio of assets to equity. The firm uses all equity and no debt financing. The firm maintains a constant net profit margin. Common stock is the firm's only form of equity 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 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: Green Caterpillar Garden Supplies Inc. has no debt in its capital structure and has $300 million in assets. Its sales revenues last year were $150 million with a net income of $10 million. The company distributed $1.25 mllion as dividends to its shareholders last year. What is the firm's self-supporting growth rate? 3.9090 0 1.32% o 0.42% 3.01% Which of the following are assumptions of the self-supporting growth model? Check all that apply. The firm maintains a constant ratio of assets to equity. The firm uses all equity and no debt financing. The firm maintains a constant net profit margin. Common stock is the firm's only form of equity
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