4) Subsidiary sustainable growth rate (10 marks) Wally is pleased with your work. He asks you for help on one more project - and then you can take a well-deserved break! He gives you this information that he has collected on one of TimCo's key subsidiaries, Oscar & Ollie Inc.: Sales = $165,000 Net Income = $14,800 Dividends = $9,300 Total Debt = $68,000 Total Equity = $51,000 Wally wants to know- (a) What is the sustainable growth rate? (4 marks) (6) If Oscar & Ollie grows at this rate, how much new borrowing will take place in the coming year, assuming a constant debt-equity ratio? (2 marks) (c) What growth rate could be supported with no outside financing at all? (2 marks) 1