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ICC, Inc. (ICC) had sales of $300,000 on which it earned net income of $26,000. Its total debt is $57,000 and total equity is $76,000.
ICC, Inc. (ICC) had sales of $300,000 on which it earned net income of $26,000. Its total debt is $57,000 and total equity is $76,000. 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.$9,882
B.$16,200
C.$30,250
D.$12,750
E.$25,385
F.$27,720
G.$20,357
H.$7,500
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