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One of Superios Board Directors is adamant that investors could be tempted to buy into a new bond issue. If she is correct, how could

One of Superios Board Directors is adamant that investors could be tempted to buy into a new bond issue. If she is correct, how could this change the companys growth prospects, assuming that Superio does not alter its leverage? Shareholders equity was EUR255 million at last financial year-end. Assume that all other metrics remain as outlined in b) above and that the company has adopted the new 55% pay-out policy. Calculate the new possible rate of growth and explain your results.

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