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Intro Your company's most recent income statement and balance sheet are given below: Income statement ($ million) Balance sheet ($ million) Sales 13 Current
Intro Your company's most recent income statement and balance sheet are given below: Income statement ($ million) Balance sheet ($ million) Sales 13 Current assets 12.8 Debt 19.2 Costs 10.4 Net income 2.6 Fixed assets Total assets 51.2 Equity 44.8 64 Total 64 Sales, assets and costs are expected to grow by the same rate next year, while company expects to keep its debt-equity ratio constant. The company expects to pay out 70% of net income as dividends. Part 1 Attempt 1/10 for 10 pts. What is the particular growth rate for the next year, at which company will need zero external financing (EFN=0)? What is the sustainable growth rate? 4+ decimals Submit
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