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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 %

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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

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