Question
Youve collected the following information about Caccamisse, Incorporated: Sales = $ 270,000 Net income = $ 17,500 Dividends = $ 6,300 Total debt = $
Youve collected the following information about Caccamisse, Incorporated:
Sales | = | $ 270,000 |
---|---|---|
Net income | = | $ 17,500 |
Dividends | = | $ 6,300 |
Total debt | = | $ 58,000 |
Total equity | = | $ 89,000 |
1. What is the sustainable growth rate for the company?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
2. Assuming it grows at this rate, how much new borrowing will take place in the coming year, assuming a constant debt-equity ratio?
Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
3. What growth rate could be supported with no outside financing at all?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
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