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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 26 Current assets
Intro Your company's most recent income statement and balance sheet are given below: Income statement ($ million) Balance sheet ($ million) Sales 26 Current assets 10.4 Debt 15.6 Costs 20.8 Fixed assets 41.6 Equity 36.4 Net income 5.2 Total assets 52 Total 52 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 18 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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