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The following data has been collected for Mayo Corporation: Data: Sales 200,000 INet Income 18,000 Dividends 13,000 Total Debt 135,000 Total Equity 55,000 Given this
The following data has been collected for Mayo Corporation: Data: Sales 200,000 INet Income 18,000 Dividends 13,000 Total Debt 135,000 Total Equity 55,000 Given this information, calculate the following: (a) sustainable growth rate. (b) If the company does grow at this rate, determine the new borrowing that needs to occur. (C) What growth rate could be supported with no outside financing
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