Question
Youve collected the following information about Erna, Inc.: Sales = $ 305,000 Net income = $ 18,200 Dividends = $ 7,000 Total debt = $
Youve collected the following information about Erna, Inc.:
Sales | = | $ | 305,000 | |
Net income | = | $ | 18,200 | |
Dividends | = | $ | 7,000 | |
Total debt | = | $ | 65,000 | |
Total equity | = | $ | 96,000 | |
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 %
You've collected the following information about Erna, Inc.: $305.000 Sales $18.200 Net income Dividends $ 7.000 96.000 Total equity 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 the coming year, assuming a constant debt-equity ratio? (Do not round intermediate calculations and round your answer to 2 decimal Assuming it grows at this rate, how much new borrowing will take place 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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started