Medifast,Inc., is a producer and marketer of weight-loss meals and other health and weight-loss products. Following are selected finfncial data for the company for the priod 2006-2010.

	2006	2007	2008	2009	2010
Profit margin(%)	6.00	7.00	4.60	5.20	7.20
Retention Ration (%)	99.50	100.00	100.00	100.00	100.00
Asset turnover (X)	1.33	2.02	1.92	2.07	2.64
Fianacial leverage (X)	1.61	1.69	1.57	1.57	1.64
Growth rate in sales (%)	46.80	84.60	13.10	25.90	57.10

a. Calculate Medifast's annual sustainable growth rate for the years 2006-2010.

b. Comparing the company's sustainable growth rate with its actual growth rate in sales, what growth management problems did Medifast fave over this period?

c. How did the company cope with these problems?

d.Is the increase in dividends a good idea for Medifast Inc.