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State St. Co. has a debt-equity ratio of 0.4, 30% of their net income is distributed to shareholders, and the ratio of total assets to

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State St. Co. has a debt-equity ratio of 0.4, 30% of their net income is distributed to shareholders, and the ratio of total assets to sales is 1.2. Question 1 (4 points) Which value for ROA must the firm achieve if it projects a sales growth of 10% with a constant capital structure? What profit margin must the firm achieve if it projects a sales growth of 10% with a constant capital structure? Given the values you have for State St. Co., what is the sales growth represented by point x (in percentage)? Tocal Ficing Needed Internal Financi X Sales Growth How much is the external financing needed at point x

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