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3-42 Sustainable Growth and Outside Financing [LO 3] Youve collected the following information about Fox, Inc.: Sales = $ 260,000 Net income = $ 17,300
3-42 Sustainable Growth and Outside Financing [LO 3] Youve collected the following information about Fox, Inc.: Sales = $ 260,000 Net income = $ 17,300 Dividends = $ 6,100 Total debt = $ 56,000 Total equity = $ 87,000 Requirement 1: What is the sustainable growth rate for the company? (Do not include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.16).) Sustainable growth rate % Requirement 2: Assuming it grows at this rate, how much new borrowing will take place in the coming year, assuming a constant debt-equity ratio? (Do not include the dollar sign ($). Round your answer to 2 decimal places (e.g., 32.16).) Additional borrowing $ Requirement 3: What growth rate could be supported with no outside financing at all? (Do not include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.16).) Internal growth rate %
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