Planks Plants had net income of $5,000 on sales of $50,000 last year. The firm paid a dividend of $1,100. Total assets were $300,000, of which $150,000 was financed by debt.

a.	What is the firms sustainable growth rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.)

Sustainable growth rate

%

b.	If the firm grows at its sustainable growth rate, how much debt will be issued next year? (Do not round intermediate calculations.)

New debt

$

c.	What would be the maximum possible growth rate if the firm did not issue any debt next year? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Maximum growth rate

%