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Youve collected the following information about Fox, Inc.: Sales = $ 320,000 Net income = $ 18,500 Dividends = $ 7,300 Total debt = $
Youve collected the following information about Fox, Inc.: |
Sales | = | $ | 320,000 | |
Net income | = | $ | 18,500 | |
Dividends | = | $ | 7,300 | |
Total debt | = | $ | 68,000 | |
Total equity | = | $ | 99,000 | |
Requirement 1: |
What is the sustainable growth rate for the company? (Do not include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.16).) |
Sustainable growth rate | % |
Requirement 2: |
Assuming it grows at this rate, how much new borrowing will take place in the coming year, assuming a constant debt-equity ratio? (Do not include the dollar sign ($). Round your answer to 2 decimal places (e.g., 32.16).) |
Additional borrowing | $ |
Requirement 3: |
What growth rate could be supported with no outside financing at all? (Do not include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.16).) |
Internal growth rate | % |
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