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You've collected the following information about Caccamisse, Incorporated: Sales Net income Dividends Total debt Total equity = $ 285,000 = $ 17,800 $ 6,600 =
You've collected the following information about Caccamisse, Incorporated: Sales Net income Dividends Total debt Total equity = $ 285,000 = $ 17,800 $ 6,600 = $ 61,000 = $ 92,000 a. 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. b. 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. c. 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. a. Sustainable growth rate b. Additional borrowing c. Growth rate % %
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