Q.) The following information pertains to XYZ Ltd.

Assets to sales ratio = 0.80

Spontaneous liabilities to sales ratio = 0.50

Profit margin = 5 percent

Dividend payout ratio = 0.6

Previous years sales = Rs 1200

Required:

What is the maximum sales growth rate that can be financed without raising external funds?

Part B:

Q). Mohan wishes to borrow Rs. 15,00,000 to buy a flat. He approaches a housing fianc company which charges 13 percent interest. He could pay Rs 2,00,000 per year towards loan amortization. What should be the maturity period of the loan? please answer both questions