1. Managing Growth CHAPTER 4 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

6. FIGURE 4-1 New Sales Require New Assets, Which Must Be Financed

11. FIGURE 4-2 A Graphical Representation of Sustainable Growth

13. TABLE 4-1 A Sustainable Growth Analysis of Genentech, Inc., 2003 – 2007*

15. FIGURE 4-3 Genentech’s Sustainable Growth Challenges, 2003-2007

17. TABLE 4-1 A Sustainable Growth Analysis of Genentech Inc., 2003 – 2007*

27. TABLE 4-2 Sources of Capital to U. S. Nonfinancial Corporations, 1998-2007

28. TABLE 4-3 A Sustainable Growth Analysis of Scotts Miracle-Gro Company, 2003-2007*

30. FIGURE 4-4 Scotts Miracle-Gro Company’s Sustainable Growth Challenges, 2003-2007

37. FIGURE 4-5 Net New Equity Issues 1971-2007

38. FIGURE 4-5 (Continued) Sources. Federal Reserve System, Flow of Funds Accounts of the United States, http://www.federalreserve.gov/releases/z1/Current/data.htm . Bank of Japan, Flow of Funds, Non-financial Corporations, www.boj.or.jp/ . U. K. Office of National Statistics, Financial Account: Non-financial Corporations, www.statistics.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 equal amount.

41. FIGURE 4-6 Gross Public Equity Issues and Initial Public Offerings, 1970-2006

42. Note: New equity is publicly issued stock including preferred stock. IPOs exclude over allotment 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 2004 IPO Market," http://bear.cba.ufl.edu/ritter . FIGURE 4-6 (Concluded)