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Question 3 [5 Marks] You are the finance manager at Techno Inc. Techno Inc has been performing low during the last few years. In
Question 3 [5 Marks] You are the finance manager at Techno Inc. Techno Inc has been performing low during the last few years. In the meeting with the BOD you have been asked to suggest the BOD about the growth of the company. You collected the following information about for the first quarter of the year 2019. Sales Dividends Total debt Cost Total equity Depreciation Interest $195,000 $9,300 $86,000 $100,000 $58,000 $60,500 $10,000 Based on the above information find the following a) Sustainable growth rate for Techno Inc. b) If it does grow at this rate, how much new borrowing will take place in the coming year, assuming a constant debt-equity ratio? c) What growth rate could be supported with no outside financing at all? [Internal Growth Rate] Accessibility: Investigate FOCUS
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