Green Moose Industries has no debt in its capital structure and has $300 million in assets. Its sales revenues last year were $210 million with a net income of $10 million. The company distributed $1.55 million as dividends to its shareholders last year.

What is the firms self-supporting, growth rate? (Note: Do not round your intermediate calculations.)

2.90%

4.00%

0.61%

0.52%

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

The firm must issue the same number of new common shares that it issued last year.

The firm maintains a constant net profit margin.

The firm uses all equity and no debt financing.

Common stock is the firms only form of equity.