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What is the fastest annual rate

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Reference no: EM132969423

Suppose the following numbers will hold forever.(All returns below are annual returns.)

Required Return on Equity: 15%

Accounting Return on Equity: 18%

Stock Beta: 0.9

Plowback Ratio: 80%

Required Return on Assets: 10%

Problem 1: What is the fastest annual rate in which the company can grow its sales in long run without raising new equity capital?

Reference no: EM132969423

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