Question
Youve collected the following information about Draiman, Inc.: Sales $ 175,000 Net income $ 13,000 Dividends $ 8,500 Total debt $ 70,000 Total equity $
Youve collected the following information about Draiman, Inc.:
Sales $ 175,000
Net income $ 13,000
Dividends $ 8,500
Total debt $ 70,000
Total equity $ 57,000
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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