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Assume that a pizzeria Luca's Pizza started the year with $1 million in book value of equity. It plans no intermediate equity injections or withdrawals

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Assume that a pizzeria Luca's Pizza started the year with \$1 million in book value of equity. It plans no intermediate equity injections or withdrawals and projects net income of $300,000 for the year. It will pay a $100,000 dividend at the beginning of the next period and retain the rest. Assuming that the pizzeria will scale up with the same margins, answer the following questions: \#1: What is the 'current' sustainable growth rate for Luca's Pizza? Show your work [2 pts] \#2: What is the 'maximum' sustainable growth rate for Luca's Pizza? Show your work and explain how this could be achieved [ 2pts ]

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