Hawkins Laboratories has assets of $15 million supported by $5million in debt and $10 million in owners equity. Its 2021 net income was $3 million, and its retention ratio was 30%. Assume that net income grows at the same rate as assets, and that funding for the increase in assets first comes only from additions to retained earnings.

A) Find external funding needed for growth rates of: a. 10% b. 15%

B) How much debt has to be added to maintain Hawkins debt to equity ratio when it grows by: a. 10% b. 15%

C) In words, describe what happens to Hawkins debt to equity ratio if it grows at: a. Its Internal Growth Rate b. Its Sustainable Growth Rate c. More than its Sustainable Growth Rate and uses only debt for its external financing needs.