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Youve collected the following information about Molino, Inc.: Sales $ 195,000 Net income $ 13,800 Dividends $ 8,900 Total debt $ 78,000 Total equity $
| Youve collected the following information about Molino, Inc.: |
| Sales | $ | 195,000 | |
| Net income | $ | 13,800 | |
| Dividends | $ | 8,900 | |
| Total debt | $ | 78,000 | |
| Total equity | $ | 61,000 | |
| 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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