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Bohemian Manufacturing Company has no debt in its capital structure and has $150 million in assets. Its sales revenues last year were $60 million with a net income of $5 million. The company distributed $1.85 mlion as dividends to its shareholders last year. What is the firms self-supporting growth rate? 0 1.25% 0 4.78% o 1.51% 2.14% Which of the following are assumptions of the self-supporting growth model? Check all that apply The firms total asset turnover ratio remains constant. The firm pays no dividends The firm maintains a constant ratio of assets to equity. The firm maintains a constant net profit margin.

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Home nert Page Layout Formulas Data Review View dd-Ins Cut Σ AutoSum ー E ゴWrap Text ta copy. B า 프 . Ej-., Δ. : r_一 逻锂函Merge & Center. $, % , 弼,8 conditional Format . Cell Insert Delete Format Paste Sort &Find & 2 ClearFe Select Editing Format Painter Formatting, as Table w styles. Styles ▼ ㆆ ▼ Clipboard Font Alignment Number Cells BL97 AZ BA BC BD BE BF BG BH BI BJ BK BL BM BN 82 83 84 85 86 87 ROA = NET INCOME/ TOTAL ASSETS * 100 ROA-5/150*100-3.3333% DIVIDEND PAYOUT RATIO DIVIDEND/NET INCOME 100 DIVIDEND PAYOUT RATIO = 1.85/5*100 = 37.00% 89 90 91 92 93 94 95 96 97 98 RETENTION RATIO-100%-37%-63% SELF-SUSTAINBALE GROWTH RATE (ROA * RETENTION RATIO)/1-(ROA RETENTION RATIO) ANS (0.03333*0.63)/(1-(0.03333 0.63)) 2.14% ASUMPTIONS OF SELF-SUPPORTING GROWTH RATE CONSTANT TOTAL ASSET TURNOVER CONSTANT RATIO OF ASSETS TO EQUITY CONSTANT PROFIT MARGIN 100 4FIFOCASH BUDGET 45 BV MV ratio VARIANCE BEP, OL FL ros B-S loss SALES BUDGET DIFF ANALYSIS overheadfloat

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