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Your firm has sales of $10,000,000, net income of $800,000, total assets of $1,000,000, and equity of $4,000,000. Your firm projects an increase in sales

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Your firm has sales of $10,000,000, net income of $800,000, total assets of $1,000,000, and equity of $4,000,000. Your firm projects an increase in sales of 15 percent and has a dividend payout ratio of 30 percent? What is the sustainable growth rate? b. In general, if we find that the sustainable growth rate is less than what managers and shareholders believe is achievable and value maximizing, should we limit growth? a

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