5. Sustainable growth As a firm grows, it must support increases in revenue with new...

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5. Sustainable growth As a firm grows, it must support increases in revenue with new investments in assets. The self-supporting, or sustainable, growth model helps a firm assess how rapidly it can grow, while maintaining a balance between its cash outfiows (increases in noncash assets) and inflows (funds resulting from increases in liabilities or equity). Consider the following case of Green Moose Industries: Green Moose Industries has no debt in its capital structure and has $300,000,000 in assets. Its sales revenues last year were $210,000,000 with a net income of $7,000,000. The company distributed $155,000 as dividends to its shareholders last year. Given the information above, what is Green Moose Industries's sustainable growth rate? O 0.51% 2.33 3.914 0.059 Which of the following are assumptions of the sustainable (self-supporting) growth model? Check all that apply. The firm pays no dividends. Increases in abilities or equity). Consider the following case of Green Moose Industries: Green Moose Industries has no debt in its capital structure and has $300,000,000 in assets. Its sales revenues last year were $210,000,000 with a net income of $7,000,000. The company distributed $155,000 as dividends to its shareholders last year. Given the information above, what is Green Moose Industries's sustainable growth rate? O 0.51% 2.33% 3.91% 0.05% Which of the following are assumptions of the sustainable (self-supporting) growth model? Check all that apply. The firm pays no dividends. The firm's liabilities and equity must increase at the same rate. The firm will not issue any new common stock next year. The firm pays out a constant proportion of its earnings as dividends. Grade it Now Save & Continue Continue without saving

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