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b. If the profit margin remains at 7.50% and the dividend payout ratio remains at 40%, at what growth rate in sales will the additional

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b. If the profit margin remains at 7.50% and the dividend payout ratio remains at 40%, at what growth rate in sales will the additional financing requirements be exactly zero? In other words, what is the firm's sustainable growth rate? (Hint: Set AFN equal to zero and solve for g.) Round your answer to two decimal places. % b. Calculating the growth rate in sales at which the additional financing requirements will be exactly zero Profit margin Dividend payout ratio Addition to retained earnings 2021 Growth rate in sales 7.50% 40% Formulas \#N/A \#N/A a. Construct the forecasted financial statements assuming that these changes are made. What are the firm's forecasted notes payable and longterm debt balances? What is the forecasted addition to retained earnings? Round your answers to the nearest cent. b. If the profit margin remains at 7.50% and the dividend payout ratio remains at 40%, at what growth rate in sales will the additional financing requirements be exactly zero? In other words, what is the firm's sustainable growth rate? (Hint: Set AFN equal to zero and solve for g.) Round your answer to two decimal places. % b. If the profit margin remains at 7.50% and the dividend payout ratio remains at 40%, at what growth rate in sales will the additional financing requirements be exactly zero? In other words, what is the firm's sustainable growth rate? (Hint: Set AFN equal to zero and solve for g.) Round your answer to two decimal places. % b. Calculating the growth rate in sales at which the additional financing requirements will be exactly zero Profit margin Dividend payout ratio Addition to retained earnings 2021 Growth rate in sales 7.50% 40% Formulas \#N/A \#N/A a. Construct the forecasted financial statements assuming that these changes are made. What are the firm's forecasted notes payable and longterm debt balances? What is the forecasted addition to retained earnings? Round your answers to the nearest cent. b. If the profit margin remains at 7.50% and the dividend payout ratio remains at 40%, at what growth rate in sales will the additional financing requirements be exactly zero? In other words, what is the firm's sustainable growth rate? (Hint: Set AFN equal to zero and solve for g.) Round your answer to two decimal places. %

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