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Question
Flo's Flowers has annual sales of $61,888, depreciation of $8,100, interest paid of $970, cost of goods sold of $29,400, taxes of $4,918, and dividends paid of $4,810. The firm has total assets of $105,300 and total debt of $51,600. The firm does not want any additional external equity financing and also wants to maintain a constant debt-equity ratio. What rate of growth can this firm maintain?
A) 27.16 percent
B) 12.27 percent
C) 34.22 percent
D) 13.27 percent
E) 23.82 percent
Answer
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