A a First we need to calculate the current sales and change in sales The

A a first we need to calculate the current sales and

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the external funds needed that you calculated in part (b). )
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)
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)
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10. Sustainable Growth Rate The Wintergrass Company has an ROE of 11.4 percent and a payout ratio of 25 percent. a. What is the company’s sustainable growth rate? b. Can the company’s actual growth rate be different from its sustainable growth rate? Why or why not? c. How can the company increase its sustainable growth rate?
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