C. Based on the following information for the X Mining Company, 1. What is EFN if sales are predicted to grow by 12%? Use the percentage of sales approach and assume the company is operating at full capacity. The payout ratio is constant. 2. What growth rate can X Company maintain if no external financing is used? What is the sustainable growth rate? Income Statement Balance Sheet Sales $6475 Current Assets $9000 Current Liabilities $7000 Costs 3981 Fixed Assets 25000 Long Term Debt 15000 Taxable Income 2494 Equity 12000 Taxes (34%) 848 Total $34000 Total Liabilities & $34000 Owners' Equity Net Income 1646 Dividend 741 R/E 905