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S04-21 Sustainable Growth and Outside Financing (L03) You've collected the following information about Caccamisse, Incorporated: Sales $ 255,000 Net income $ 19,200 Dividends $ 7,500

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S04-21 Sustainable Growth and Outside Financing (L03) You've collected the following information about Caccamisse, Incorporated: Sales $ 255,000 Net income $ 19,200 Dividends $ 7,500 Total debt $ 67,000 Total equity $ 77,000 a. What is the sustainable growth rate for the company? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) 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? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What growth rate could be supported with no outside financing at all? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Sustainable growth rate b. Additional borrowing c. Internal growth rate $ 15,20 % 10,184.00 X 8.12 %

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