Cold Duck Manufacturing has no debt in its capital structure and has $150 million in assets. its sales revenues last year were $45 million with a net income of $10 million. the company districuted $1.70 million as dividens to its shareholders last year. WHat is the firms sustainable growth rate?

Which of the following are assumptions of the sustainable growth model? Check all that apply.

THe firm pays no dividens

the firm maintains a constant net profit margin

the firms liabilities and equity must increase at the same rate

the firm maintains a constant ratio of liabilities to equity