a) A firm has sales of $355,000, net income of $28,000, and dividends of $12,500. Total debt is $73,000 and Total equity is $95,000. If the firm grows at the SGR, issues no new equity, and maintains its Debt-Equity ratio, how much must be borrowed? (Round your answer to two decimal places; e.g. 1234.56) ans: 11910.53

b) A firm has net income of $5,000 and an average tax rate of 40%. Interest expense for the year was $650. What is EBIT? ans 8983.33