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You've collected the following information about Gandalf, Inc.: 280,000 Sales Net income Dividends Total debt Total equity = $ 17,700 $ 6,500 = $60,000 =
You've collected the following information about Gandalf, Inc.: 280,000 Sales Net income Dividends Total debt Total equity = $ 17,700 $ 6,500 = $60,000 = $ 91,000 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 b. Additional borrowing Growth rate c. %
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