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Plank's Plants had net income of $7,000 on sales of $50,000 last year. The firm paid a dividend of $1,960. Total assets were $300,000, of

image text in transcribed Plank's Plants had net income of $7,000 on sales of $50,000 last year. The firm paid a dividend of $1,960. Total assets were $300,000, of which $120,000 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 1 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 1 decimal place

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