NiteLate Inc. had revenue of $175,000 last year, costs of $105,000 and depreciation of $26,250. The company paid 5.4% interest on its debt, and its average tax rate is 0.25. NiteLate paid out $17,500 in dividends, and wants to maintain the same dividend payout ratio in the future.

At the beginning of the year, the company had a book value of debt of $41,000 and a book value of equity of $51,000. Over the course of the year, no debt or equity was newly issued or retired.

a) What was net income last year (in $)?

b) What is the sustainable growth rate?

c) How much does the company have to newly borrow to keep a constant debt/equity ratio (in $)?

d) What rate of growth is sustainable without any additional borrowing (internal growth rate)?