Question
Youve collected the following information about Erna, Inc.: Sales = $ 300,000 Net income = $ 18,100 Dividends = $ 6,900 Total debt = $
Youve collected the following information about Erna, Inc.:
Sales | = | $ | 300,000 | |
Net income | = | $ | 18,100 | |
Dividends | = | $ | 6,900 | |
Total debt | = | $ | 64,000 | |
Total equity | = | $ | 95,000 | |
What is the sustainable growth rate for the company? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Sustainable growth rate % Assuming it grows at this rate, how much new borrowing will take place in the coming year, assuming a constant debtequity ratio? (Do not round intermediate calculations and 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 and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Growth rate %
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