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Problem 2 Sustainable Growth and Outside Financing [LO3] You've collected the follow- ing information about Odyssey, Inc.: Sales $165,000 Net income = $14,800 Dividends =
Problem 2 Sustainable Growth and Outside Financing [LO3] You've collected the follow- ing information about Odyssey, Inc.: Sales $165,000 Net income = $14,800 Dividends = $9,300 Total debt $68,000 Total equity = $51,000 What is the sustainable growth rate for the company? If it does grow at this rate, how much new borrowing will take place in the coming year, assuming a constant debt-equity ratio? What growth rate could be supported with no outside financing at all
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