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Use the following information for questions 1520. Green Tech Laboratories has assets of $25 million supported by $10 million in debt and $15 million in

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Use the following information for questions 1520. Green Tech Laboratories has assets of $25 million supported by $10 million in debt and $15 million in owner's equity. Its 2021 net income was $5 million, and its retention ratio was 40%. Assume that net income grows at the same rate as assets, and that funding for the increase in assets first comes only from additions to retained earnings. 15. (4 points) Find external funding needed for growth rates of: a. 15% b. 20% 16. (4 points) How much debt has to be added to maintain Green Tech's debt to equity ratio when it grows by: a. 15% b. 20% 17. (4 points) What is the change in equity if the debt to equity is maintained and the company grows by: a. 15% b. 20% 18. ( 2 points) From your answer to 17 , is the sustainable growth rate higher or lower than 15% ? 19. (1 point) In words, describe what would happen to external funding needed for a and b the retention ratio decreased. 20. (3 points) In words, describe what happens to Green Tech's debt to equity ratio if it grows at: a. Its Internal Growth Rate b. Its Sustainable Growth Rate c. More than its Sustainable Growth Rate and uses only equity for its external financing needs

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