Question
ICC, Inc. (ICC) had sales of $300,000 on which it earned net income of $24,000. Its total debt is $54,000 and total equity is $78,000.
ICC, Inc. (ICC) had sales of $300,000 on which it earned net income of $24,000. Its total debt is $54,000 and total equity is $78,000. Last year, ICC paid dividends of $6,000. If the total debt ratio remains constant and the company grows at the sustainable growth rate in the coming year, how much new borrowing will take place?
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Practical financial management
Authors: William r. Lasher
5th Edition
0324422636, 978-0324422634
