PLEASE HELP!

1. Haystone, Inc. does not want to incur any additional external financing. Assuming the dividend payout ratio is constant, What is their maximum rate of growth?

2. If Haystone, Inc. decides to maintain a constant debt-equity ratio, what rate of growth can they maintain?

3. Haystone, Inc. is currently operating at maximum capacity. All costs, asstes, and current liabilities vary directly with sales. The tax rate and the dividend payout ratio will remain constant. How much additional debt is required if no new equity is raised and sales are projected to increase by 12 percent?

Haystone, Inc. 2014 Income Statement

Net Sales	$8,500
Cost of Goods sold	7,210
Depreciation	400
Earnings before interest and taxes	890
Interest paid	40
Taxable Income	$850
Taxes	310
Net Income	540
Dividends	$324
Addition to retained earnings	$216

Haystone, Inc. 2014 Balance Sheet

	2008		2008
Cash	$1,600	Accounts payable	$2,075
Accounts rec.	975	Long-term debt	425
Inventory	2,425	Common stock	3,000
Total	$5,000	Retained earnings	1,700
Net Fixed Assets	2,200
Total Assets	$7,200	Total liabilities & equity	$7,200