Use the following information for the Lowell, Inc. for this and the next seven questions.

Sales $$200,000$

Debt $95,000$

Dividends $5,000$

Equity $40,000$

Interest rate $7\%$

Net income $16,000$

Tax rate $30\%$

Assume the company has no short$-$term debt. Also assume that all asset turnover, profit margin, and dividend payout ratios remain constant.

How much additional debt will Lowell Inc. require to keep the current debt$-$equity ratio constant if the company were to grow at the sustainable growth rate?

A$.$

$131,034$

B$.$

$186,206$

C$.$

$36,034$

D$.$

$146,975$

E$.$

$95,000$

F$.$

$887,954$

At what growth rate could the Lowell Inc. grow if it did not wish to increase the amount of debt?

A$.$

$16\mathrm{.}78\%$

B$.$

$37\mathrm{.}93\%$

C$.$

$21\mathrm{.}46\%$

D$.$

$19\mathrm{.}29\%$

E$.$

$08\mathrm{.}87\%$

F$.$

$09\mathrm{.}24\%$

What will be the new total debt ratio for Lowell Inc. at the end of the next year if it grew at the internal growth rate?

A$.$

$16\mathrm{.}78\%$

B$.$

$11\mathrm{.}85\%$

C$.$

$37\mathrm{.}93\%$

D$.$

$21\mathrm{.}46\%$

E$.$

$64\mathrm{.}63\%$

F$.$

$70\mathrm{.}37\%$