1. Calculate the internal growth rate and sustainable growth rate? 2. Sales for 2019...
50.1K
Verified Solution
Link Copied!
Question
Finance
1. Calculate the internal growth rate and sustainable growth rate? 2. Sales for 2019 are projected to grow by 20%. Interest expense and depreciation expense remain constant. Costs, other expenses, current assets, fixed assets, and accounts payable increase spontaneously with sales. If the firm is operating at full capacity (100%) and no debt or equity is issued, what is the external financing needed (EFN) to support the 15% sales growth? 3. Suppose Tesla was operating at only 90% capacity in 2017 A. What would be the EFN to achieve a 20% growth? B. What would be the EFN to achieve a 30% growth? 
1. Calculate the internal growth rate and sustainable growth rate?
2. Sales for 2019 are projected to grow by 20%. Interest expense and depreciation expense remain constant. Costs, other expenses, current assets, fixed assets, and accounts payable increase spontaneously with sales. If the firm is operating at full capacity (100%) and no debt or equity is issued, what is the external financing needed (EFN) to support the 15% sales growth?
3. Suppose Tesla was operating at only 90% capacity in 2017
A. What would be the EFN to achieve a 20% growth?
B. What would be the EFN to achieve a 30% growth?
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.