Question
VWX Inc., has sales of $200,000, net income of $35,000, dividend payout of 50%, total assets of $350,000 and target debt-equity ratio of 1.5. If
VWX Inc., has sales of $200,000, net income of $35,000, dividend payout of 50%, total assets of $350,000 and target debt-equity ratio of 1.5. If the company grows at its sustainable growth rate in the coming year, how much new borrowing (to the nearest dollar) will take place?
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Fundamentals of Corporate Finance
Authors: Richard Brealey, Stewart Myers, Alan Marcus, Devashis Mitra, Elizabeth Maynes, William Lim
6th Canadian edition
1259024962, 978-1259024962
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