QUESTION ONE Given the following information: Revenues: $8 million Average Inventory: $6 million Liabilities: $10 million Average A/R: $2 million Total Expenses: $7 million Average Fixed Assets: $10 million Cost of Goods Sold: $3 million Accounts Payables: $4 million Assume no other assets or liabilities exist beyond what is articulated above. SELLE ac b. WA TUTTI e. How much equity would have to be swapped out for debt to increase ROE by 1% assuming that nothing else changes? f. What is the firm's sustainable growth rate if dividends are equal to $0.5 million? QUESTION ONE Given the following information: Revenues: $8 million Average Inventory: $6 million Liabilities: $10 million Average A/R: $2 million Total Expenses: $7 million Average Fixed Assets: $10 million Cost of Goods Sold: $3 million Accounts Payables: $4 million Assume no other assets or liabilities exist beyond what is articulated above. SELLE ac b. WA TUTTI e. How much equity would have to be swapped out for debt to increase ROE by 1% assuming that nothing else changes? f. What is the firm's sustainable growth rate if dividends are equal to $0.5 million