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Youve collected the following information about Microsoft Inc.: Sales = $195,000, Net income = $17,500, Dividends = $9,300, Total debt = $86,000, Total equity =

Youve collected the following information about Microsoft Inc.: Sales = $195,000, Net income = $17,500, Dividends = $9,300, Total debt = $86,000, Total equity = $58,000. What is the sustainable growth rate for Microsoft? If it does growth at this rate, how much new borrowing will take place in the coming year, assuming a constant debtequity ratio? What growth rate could be supported with no outside financing at all.

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