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Youve collected the following information about Molino, Inc.: Sales $ 215,000 Net income $ 14,600 Dividends $ 9,300 Total debt $ 86,000 Total equity $
Youve collected the following information about Molino, Inc.: |
Sales | $ | 215,000 | |
Net income | $ | 14,600 | |
Dividends | $ | 9,300 | |
Total debt | $ | 86,000 | |
Total equity | $ | 65,000 | |
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. | If it does grow 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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