Business, 12.12.2019 06:31 Lilboyk36

As a firm grows, it must support increases in revenue with new investments in assets. the self-supporting growth model 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: fuzzy button clothing company 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 $1.05 million as dividends to its shareholders last year. what is the firm’s self-supporting, growth rate? (note: do not round your intermediate calculations.) a. 0.35% b. 3.08% c. 3.82% d. 1.36% which of the following are assumptions of the self-supporting growth model? check all that apply. a. the firm maintains a constant ratio of assets to equity. b. the firm maintains a constant net profit margin. c. the firm uses all equity and no debt financing. d. common stock is the firm’s only form of equity.

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As a firm grows, it must support increases in revenue with new investments in assets. the self-suppo...

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