1. CHAPTER FOUR
MANAGING GROWTH

2. FIGURE 4-1 New Sales Require New Assets, Which Must Be Financed
Liabilities and
owners’ equity
Assets
New assets
supporting
increased sales
New
borrowings
Increases in
Owners’ equity

3. FIGURE 4-2 A Graphical Representation of Sustainable Growth
Balanced growth g* = 1.4 x ROA
Cash deficits
Balanced growth g* = 0.4 x ROA
Cash surpluses

4. TABLE 4-1 A Sustainable Growth Analysis of U. S
TABLE 4-1 A Sustainable Growth Analysis of U.S. Cellular Corporation,

5. FIGURE 4-3 U.S. Cellular Corporation’s Sustainable Growth Challenges, 1997-2001

6. TABLE 4-2 Sources of Capital to U. S
TABLE 4-2 Sources of Capital to U. S. Nonfinancial Corporations,
Available at

7. TABLE 4-3 A Sustainable Growth Analysis of Ametek, Inc., 1997-2001

8. FIGURE 4-6 Ametek, Inc.’s Sustainable Growth Challenges, 1997-2001

9. FIGURE 4-5 Net New Equity Issues 1965-2001

10. FIGURE 4-5 (Continued)
Sources. Federal Reserve System, Flow of Funds Accounts of the United States, data.htm. Bank of Japan, Flow of Funds, Non-financial Corpor-
ations, U.K. Office of National Statistics,
Financial Account: Non-financial Corporations,
.gov.uk.
Note: $169.4 billion of equity issued by Vodafone to acquire
Mannesmann in 2000 are omitted from U.K. figures because
German equity falls by an equal amount.

11. FIGURE 4-6 Gross Public Equity Issues and Initial Public
Offerings,

12. FIGURE 4-6 (Concluded)
Note: New equity is publicly issued stock including preferred stock. IPOs exclude overallotment options but include the international tranche, if any.
Sources: Federal Reserve Bulletin, Table 1.46, "New Security Issues U.S. Corporations," various issues for gross public equity issues; Securities Data Corporation as cited in Jay R. Ritter, "Some Factoids About the 2001 IPO Market," bear.cba.ufl.edu/ritter/ipo2001.pdf.