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External Financing Needed: Triumph Company Has Total Assets Worth $6,413,228

Question 91

Multiple Choice

External financing needed: Triumph Company has total assets worth $6,413,228. Next year it expects a net income of $3,145,778 and will pay out 70 percent as dividends. If the firm wants to limit its external financing to $1 million, what is the growth rate it can support?


A) 32.9%
B) 6.4%
C) 30.3%
D) 26.5%

Correct Answer:

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