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MyPilates Studio had net income of $2000 on sales of $50,000 last year. The firm paid a dividend of $800. Asset turnover ratio is 0.5.

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MyPilates Studio had net income of $2000 on sales of $50,000 last year. The firm paid a dividend of $800. Asset turnover ratio is 0.5. Debt is $40,000. If the firm grows at its sustainable growth rate, how much debt will be issued next year? A. $2,000 B. $1,000 C. $1,200 D. $800

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