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You've collected the following Information about Gandalf, Inc.: Sales $250,000 Net Income = $ 17,100 Dividends = $ 5,900 Total debt = $54,000 Total equity
You've collected the following Information about Gandalf, Inc.: Sales $250,000 Net Income = $ 17,100 Dividends = $ 5,900 Total debt = $54,000 Total equity = $85,000 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. 996 Sustainable growth rate Additional borrowing b. c. Growth rate 96
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