Maximum sustainable growth rate of the firm


Problem:

M&A, Inc. maintains a constant debt-equity ratio of .4. Thefirm had net income for the year of $140,000 and paid $98,000 individends. The firm has total assets of $700,000.

Required:

Question: What is the maximum sustainable growth rate of the firm given this information?

Note: Show step by step solution and I also want complete calulation.

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Accounting Basics: Maximum sustainable growth rate of the firm
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