a. What is the maximum possible growth rate in 2016 for Planners Peanuts (see problem 9) if the payout ratio remains at 50% and
Income Statement, 2015
Sales................$2,000
Costs.................1.500
Net income.........$ 500

i. No external debt or equity is to be issued?
ii. The firm maintains its 2015 debt-to-equity ratio but issues no equity?
b. Calculate the required external financing and the new capital structure for the two growth rates.