Question
Youve collected the following information about Draiman, Inc.: Sales $ 170,000 Net income $ 12,800 Dividends $ 8,400 Total debt $ 68,000 Total equity $
Youve collected the following information about Draiman, Inc.: |
Sales | $ | 170,000 | |
Net income | $ | 12,800 | |
Dividends | $ | 8,400 | |
Total debt | $ | 68,000 | |
Total equity | $ | 56,000 | |
What is the sustainable growth rate for the company? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
Sustainable growth rate | % |
If it does grow at this rate, how much new borrowing will take place in the coming year, assuming a constant debtequity ratio? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) |
Additional borrowing | $ |
What growth rate could be supported with no outside financing at all? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
Internal growth rate | % |
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