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ignore all handwriting BUS 179B F.J. Joncs 2. Assume that the gi internal and g (sustainable) growth rates are 4%, and 9% respectively Consider CRE
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BUS 179B F.J. Joncs 2. Assume that the gi internal and g (sustainable) growth rates are 4%, and 9% respectively Consider CRE (contribution to retained eamings)(NI- Diu (internal cq'y), bond Issues extemal debt) and equity issus(exteral equity) as the types of funding. What typesf funding are used for the following three growth rates? Consider a slght increase in the growth rate rm their initial state. Use or increase i use, "O" lr not used; an decrease in use. Comment " lor 12% 200 Internal Equity Debt External ul Comment on the changes in leverage for these three cases. Which of these situations is considered to be: capital consumption; a cash cow? a Lev DecreaK. 2/ l ev Decre ase BUS 179B F.J. Joncs 2. Assume that the gi internal and g (sustainable) growth rates are 4%, and 9% respectively Consider CRE (contribution to retained eamings)(NI- Diu (internal cq'y), bond Issues extemal debt) and equity issus(exteral equity) as the types of funding. What typesf funding are used for the following three growth rates? Consider a slght increase in the growth rate rm their initial state. Use or increase i use, "O" lr not used; an decrease in use. Comment " lor 12% 200 Internal Equity Debt External ul Comment on the changes in leverage for these three cases. Which of these situations is considered to be: capital consumption; a cash cow? a Lev DecreaK. 2/ l ev Decre aseStep by Step Solution
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