At year-end 2021, Wallace Landscaping's total assets, all of which are used in operations, were $2.17 million, and its accounts payable were $560,000. Sales, which in 2021 were $3.5 million, are expected to increase by 35% in 2022 . Total assets and accounts payable are proportional to sales, and that relationship will be maintained. Wallace typically uses no current liabilities other than accounts payable. Common stock amounted to $625,000 in 2021 , and retained earnings were $395,000. Wallace has arranged to sell $195,000 of new common stock in 2022 to meet some of its financing needs. The remainder of its financing needs will be met by issuing new long-term debt at the end of 2022. (Because the debt is added at the end of the year, there will be no additional interest expense due to the new debt.) Its net profit margin on sales is 5%, and 45% of earnings will be paid out as dividends. Problem 9-5 Long-Term Financing Needed Suppose the following values change to: Profit Margin: 5\% Dividend Payout Ratio: 47.1% What is the sustainable growth rate? You can either use the formula or use goal seek in Excel. Provide your answer in percentage with one decimal but without the percentage sign, i.e. enter 12.3 for 12.3%. At year-end 2021, Wallace Landscaping's total assets, all of which are used in operations, were $2.17 million, and its accounts payable were $560,000. Sales, which in 2021 were $3.5 million, are expected to increase by 35% in 2022 . Total assets and accounts payable are proportional to sales, and that relationship will be maintained. Wallace typically uses no current liabilities other than accounts payable. Common stock amounted to $625,000 in 2021 , and retained earnings were $395,000. Wallace has arranged to sell $195,000 of new common stock in 2022 to meet some of its financing needs. The remainder of its financing needs will be met by issuing new long-term debt at the end of 2022. (Because the debt is added at the end of the year, there will be no additional interest expense due to the new debt.) Its net profit margin on sales is 5%, and 45% of earnings will be paid out as dividends. Problem 9-5 Long-Term Financing Needed Suppose the following values change to: Profit Margin: 5\% Dividend Payout Ratio: 47.1% What is the sustainable growth rate? You can either use the formula or use goal seek in Excel. Provide your answer in percentage with one decimal but without the percentage sign, i.e. enter 12.3 for 12.3%