Smith Corporation has the following ratios: $\frac{A^{**}}{S_0}=1\mathrm{.}2,\frac{L^{**}}{S_0}=0\mathrm{.}4$ and a Profit Margin of $0\mathrm{.}10$ and a Dividend Payout Ratio of $45\%.$ Last year's Sales were $$150,000$ million.

Assuming that these ratios remain constant.

Use the Self Supporting Growth formula to determine the firm's self$-$supporting growth rate.

Self$-$Supporting Growth $=$

Smith Corporation has the following ratios: $A*\frac{*}{S_0}=1\mathrm{.}6,\frac{L^{**}}{S_0}=0\mathrm{.}4$ and a Profit Margin of $0\mathrm{.}10$ and a Dividend Payout Ratio of $45\%.$ Last year's Sales were $$100,000$ million.

Assuming that these ratios remain constant.

Use the AFN formula to determine the firm's selfsupporting growth rate.

Self$-$Supporting Growth $=$