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Plank's Plants had net income of $ 2 , 0 0 0 on sales of $ 5 0 , 0 0 0 last year. The
Plank's Plants had net income of $ on sales of $ last year. The firm paid a dividend of $ Total assets were $ of which $ was financed by debt.
a What is the firm's sustainable growth rate?
Note: Do not round intermediate calculations. Enter your answer as a percent rounded to decimal place.
b If the firm grows at its sustainable growth rate, how much debt will be issued next year?
Note: Do not round intermediate calculations.
c What would be the maximum possible growth rate if the firm did not issue any debt next year?
Note: Do not round intermediate calculations. Enter your answer as a percent rounded to decimal place.
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