3. Sustainable growth As a firm grows, it must support increases in revenue with new investments in assets. The 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: Blue Elk Manufacturing has no debt in its capital structure and has $200 million in assets. Its sales revenues last year were $100 million with a net income of $5 million. The company distributed $1.35 million as dividends to its shareholders last year. What is the firm's self-supporting, growth rate? (Note: Do not round your intermediate calculations.) 0.68 0.79% O 1.86% Ch.12: HW2 What is the firm's self-supporting, growth rate? (Note: Do not round your intermediate calculations.) O 0.68% O 3.28% O 0.79% O 1.86% Which of the following are assumptions of the self-supporting growth model? Check all that apply. The firm pays no dividends. The firm maintains a constant net profit margin The firm maintains a constant ratio of liabilities to equity. The firm's liabilities and equity must increase at the same rate. - Con