Question
Green caterpillar garden supplies Inc. has no debt in its capital structure and has $150 million in assets. It sales revenues last year were $45
Green caterpillar garden supplies Inc. has no debt in its capital structure and has $150 million in assets. It sales revenues last year were $45 million with a net income of $5 million the company distributed 1.85 million as dividends to its shareholders last year. What is the firms self-supporting growth rate? Which of the following are assumptions of the self-supporting growth model? Check all that apply. The firm pays no dividends. 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 assets to equity.
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