Question
You've collected the following information about Gandalf, Inc.:Sales=$325,000Net income=$18,600Dividends=$7,400Total debt=$69,000Total equity=$100,000 a. What is the sustainable growth rate for the company? (Do not round intermediate
You've collected the following information about Gandalf, Inc.:Sales=$325,000Net income=$18,600Dividends=$7,400Total debt=$69,000Total equity=$100,000a.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.)
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