Question
ICC, Inc. (ICC) had sales of $300,000 on which it earned net income of $22,000. Its total debt is $51,000 and total equity is $80,000.
ICC, Inc. (ICC) had sales of $300,000 on which it earned net income of $22,000. Its total debt is $51,000 and total equity is $80,000. 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?
A. $20,357
B. $9,882
C. $25,385
D. $7,500
E. $27,720
F. $12,750
G. $16,200
H. $30,250
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Finance Applications and Theory
Authors: Marcia Cornett, Troy Adair
3rd edition
1259252221, 007786168X, 9781259252228, 978-0077861681
