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You've collected the following information about Allie & Lou Inc.: Sales = $165,000 Net Income = $14,800 Dividends = $9,300 Total Debt = $68,000 Total

You've collected the following information about Allie & Lou Inc.:

Sales = $165,000

Net Income = $14,800

Dividends = $9,300

Total Debt = $68,000

Total Equity = $51,000

1.What is the sustainable growth rate?

2.If it does grow at this rate, how much new borrowing will take place in the coming year, assuming a constant debtequity ratio?

3.What growth rate could be supported with no outside financing at all?

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