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Sustainable growth As a firm grows, it must support increases in revenue with new investments in assets. The sustainable, or self-supporting, growth model helps a

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Sustainable growth As a firm grows, it must support increases in revenue with new investments in assets. The sustainable, or self-supporting, growth model helps a firm assess how rapidly it can grow, while maintaining a balance between its cash outflows (increases in noncash assets) and inflows (funds resulting from increases in liabilities or equity). Consider this case: Green Moose Industries has no debt in its capital structure and has $300 million in assets. Its sales revenues last year were $150 million with a net income of $10 million. The company distributed $1.15 million as dividends to its shareholders last year. What is the firm's sustainable growth rate? 3.04% 3.86% 1.34% 0.39% Which of the following are assumptions of the sustainable (self-supporting) growth model? Check all that apply. The firm's liabilities and equity must increase at the same rate. The firm's total asset turnover ratio remains constant. The firm will not issue any new common stock next year. The firm pays no dividends

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