Planks Plants had net income of $9,000 on sales of $80,000 last year. The firm paid a dividend of $1,800. Total assets were $400,000, of which $160,000 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 ? %