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Intro Montana Joe Corp. had net income of $16,800 last year, paid out $7,100 in dividends, and wants to maintain the same dividend payout ratio
Intro Montana Joe Corp. had net income of $16,800 last year, paid out $7,100 in dividends, and wants to maintain the same dividend payout ratio in the future. At the beginning of last year, the company had a book value of debt of $38,000 and a book value of equity of $42,000. Attempt 1/10 for 10 pts. Part 1 What is the sustainable growth rate? 3+ decimals Attempt 1/10 for 10 pts. Part 2 How much additional debt does the company have to take on if it grows at its sustainable growth rate in the coming year?
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