This problem introduces the concept of sustainable


Question: This problem introduces the concept of "sustainable dividends": The firm whose financials are illustrated below wishes to maintain cash balances of 80 over the next 5 years. It also desires to issue neither additional stock nor make any changes in its current level of debt. This means that dividends are the plug in the balance sheet. Model this situation (note that for some parameter levels you may get "negative dividends," indicating that there is no sustainable level of dividends).

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Finance Basics: This problem introduces the concept of sustainable
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