Blue Elk Manufacturing has no debt in its capital structure and has $$100,000,000$ in assets. Its sales revenues last year were

$$70,000,000$ with a net income of $$3,500,000.$ The company distributed $$115,000$ as dividends to its shareholders last year.

Given the information above, what is Blue Elk Manufacturing's sustainable growth rate?

$0\mathrm{.}78\%$

$0\mathrm{.}12\%$

$5\mathrm{.}87\%$

$3\mathrm{.}50\%$

Which of the following are assumptions of the sustainable $($self$-$supporting$)$ growth model? Check all that apply.

The firm pays no dividends.

The firm will not issue any new common stock next year.

The firm's total asset turnover ratio remains constant.

The firm's liabilities and equity must increase at the same rate.