Question
Daw Industries has the following ratios: A 0 */S 0 = 1.6; L 0 */S 0 = 0.4; profit margin = .10 and the payout
Daw Industries has the following ratios: A0*/S0 = 1.6; L0*/S0 = 0.4; profit margin = .10 and the payout ratio is 45%. Sales last year were $100 million. Assuming that those ratios remain constant, use the AFN equation to determine the maximum growth rate (the sustainable growth rate) CSI Industries can achieve without having to use (non-spontaneous) external funds.
What are they key factors on which external financing depends, as indicated in the AFN equation?
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Cases In Healthcare Finance
Authors: Louis C. Gapenski, George H. Pink
4th Edition
1567933424, 978-1567933420
