Financial Forecasting

1. What is the Sustainable Growth Rate given the following:

• Net income is 600,000
• Total Assets are 3.0 million
• Equity is 2 million
• Dividend is 100,000

600,000/2,000,000*1- (100,000-600,000)=.3000*1-.1167-.3500

2. A firm reports projected sales of 200 million. A/R is expected to be 20% of sales, PPE is expected to be 50% of sales, and A/P is expected to be 10% of sales and proforma income is expected to be 20 million. The firm has 15 million in equity and 12 million in debt. What is the DFN?

.20*200,000,000+.50*200,000,000+.10*200+12 =

400,000+1,000,000+200,000+12,000,000-35=23,400,000

Can someone please explain why my answers are wrong?