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Problem 4-21 Sustainable Growth and Outside Financing [LO3] You've collected the following information about Draiman, Inc.. Sales Net income Dividends Total debt Total equity $225,000
Problem 4-21 Sustainable Growth and Outside Financing [LO3] You've collected the following information about Draiman, Inc.. Sales Net income Dividends Total debt Total equity $225,000 $ 15,000 $ 9,500 $ 90,000 $ 67,000 What is the sustainable growth rate for the company? (Do not round intermediate calculations. Enten your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Sustainable growth rate If it does grow at this rate, how much new borrowing will take place in the coming year, assuming a constant debt-equity ratio? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) Additional borrowing What growth rate could be supported with no outside financing at all? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Internal growth rate
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