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Business, 12.03.2021 15:20 ohartshorn1599

Petal Providers Corporation, an online flower service, is interested in estimating its sustainable sales growth rate (how fast it can grow the company without seeking outside funding). Last year revenues (sales) were $1 million, the net profit was $50,000, the investment in assets was $750,000, payables and accruals were $100,000, and equity at the end of the year was $450,000 (i. e., beginning of year equity of $400,000 plus retained profits of $50,000). The venture did not pay out any dividends and does not expect to pay dividends for the foreseeable future. 1. Estimate the sustainable sales growth rate for Petal Providers based on the information provided in this problem. 2. What would happen if the company started paying dividends of 10% per year

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