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You've collected the following information about Gandalf, Inc.: 17 Sales $275,000 00:31:19 Net income Dividends Total debt Total equity $ 17,600 = $ 6,400 =
You've collected the following information about Gandalf, Inc.: 17 Sales $275,000 00:31:19 Net income Dividends Total debt Total equity $ 17,600 = $ 6,400 = $59,000 $90,000 a. 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.) b. 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 round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. 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.) a. % Sustainable growth rate Additional borrowing b. C. Growth rate %
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