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A company. has $50,000 in debt and $80,000 in equity and does not want the debt to equity ratio to increase, nor can it issue
A company. has $50,000 in debt and $80,000 in equity and does not want the debt to equity ratio to increase, nor can it issue new stock at this time. The firm has a net income of $13,000, employs a constant 40% dividend payout ratio, and the firm SGR is 10.80%. If sales grow at 10.80%, how much new debt can the firm use to finance its growth without issuing new equity or forcing the debt-to-equity ratio to rise
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