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Q2 Internal financial planners forecast Wooten Sims LLC's sales to increase by 4% next year Current sales are $562 million Total operating assets in the

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Q2 Internal financial planners forecast Wooten Sims LLC's sales to increase by 4% next year Current sales are $562 million Total operating assets in the current period are 1,200 million ($1.2 billion) In the current period, short term debt is $75 million, accounts payable is $80 million, and accruals are $100 million The firm's profit margin is 15% and expected to remain stable The firm pays out 60% of its earnings each period as dividends Q2a Compute the self-supporting growth rate for Wooten Sims Q2b What does this growth rate mean? Be sure to mention the AFN in your answer SHOW WORK HERE, HIGHLIGHT FINAL ANSWER IN YELLOW Q2 Internal financial planners forecast Wooten Sims LLC's sales to increase by 4% next year Current sales are $562 million Total operating assets in the current period are 1,200 million ($1.2 billion) In the current period, short term debt is $75 million, accounts payable is $80 million, and accruals are $100 million The firm's profit margin is 15% and expected to remain stable The firm pays out 60% of its earnings each period as dividends Q2a Compute the self-supporting growth rate for Wooten Sims Q2b What does this growth rate mean? Be sure to mention the AFN in your answer SHOW WORK HERE, HIGHLIGHT FINAL ANSWER IN YELLOW

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