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For questions 17 and 18 , consider the following simple firm balance sheet and income statement for 2022: Balance Sheet: Assets: $50 billion, Equity: $30

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For questions 17 and 18 , consider the following simple firm balance sheet and income statement for 2022: Balance Sheet: Assets: $50 billion, Equity: $30 billion income Statement: Revenues: $10 billion, Earnings: $3 billion The firm has a 50% dividend payout ratio. Q17. What is this firm's sustainable growth rate? A. 3.1\% B. 5.3% 50bil=30 brs 3bl3b 20b+1=10b1 C. 10% D. 11.1% Q18. If this firm uses a percentage of sales model for its financial planning and wants to grow its sales by 10%, what is a possible financial plug that would balance the pro forma balance sheet for 2023 ? A. Issue $5 billion in new debt B. Reduce its dividend payout ratio in 2023 to 0%6. C. Repay $2 billion in existing debt D. Issue $1 billion in new equity and $2.35 billion in new debt For questions 17 and 18 , consider the following simple firm balance sheet and income statement for 2022: Balance Sheet: Assets: $50 billion, Equity: $30 billion income Statement: Revenues: $10 billion, Earnings: $3 billion The firm has a 50% dividend payout ratio. Q17. What is this firm's sustainable growth rate? A. 3.1\% B. 5.3% 50bil=30 brs 3bl3b 20b+1=10b1 C. 10% D. 11.1% Q18. If this firm uses a percentage of sales model for its financial planning and wants to grow its sales by 10%, what is a possible financial plug that would balance the pro forma balance sheet for 2023 ? A. Issue $5 billion in new debt B. Reduce its dividend payout ratio in 2023 to 0%6. C. Repay $2 billion in existing debt D. Issue $1 billion in new equity and $2.35 billion in new debt

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