Question $10$: ABC inc. has the below information:

Sales $ $500,000$

Net income $ $45,000$

Dividends $ $30,000$

Total debt $ $210,000$

Total equity $ $140,000$

What growth rate could be supported assuming no new equity is issued and a constant debt$-$equity ratio?

a$.9\mathrm{.}38\%$

b$.27\mathrm{.}27\%$

c$.12\mathrm{.}00\%$

d$.5\mathrm{.}26\%$

e$.4\mathrm{.}48\%$

Referring to Question $10,$ assume same information regarding ABC inc., what growth rate could be supported with no outside financing at all?

a$.27\mathrm{.}27\%$

b$.1\mathrm{.}64\%$

c$.4\mathrm{.}48\%$

d$.12\%$

e$.9\mathrm{.}38\%$

Referring to Question $10,$ if ABC Inc. decided to grow at a rate of $12\%,$ how much new borrowing will take place in the coming year? $($assume the company is operating at full capacity, and will increase debt to cover the external financing needed$).$

a$.$ $$235,200$

b$.$ $$16,800$

c$.$ $$156,800$

d$.$ $$25,200$

e$.$ $$27,000$

f$.$ $$193,200$