Question
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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Intermediate Accounting 2014 FASB Update
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
15th edition
978-1118938782, 111893878X, 978-1118985311, 1118985311, 978-1118562185, 1118562186, 978-1118147290
