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you've collected the following information about Molino, inc.: You've collected the following information about Molino, Inc.: Sales Net income Dividends Total debt $210,000 $ 14,400
you've collected the following information about Molino, inc.:
You've collected the following information about Molino, Inc.: Sales Net income Dividends Total debt $210,000 $ 14,400 $ 9,200 $ 84,000 Total equity $ 64,000 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.) a. Sustainable growth rate b. Additional borrowing c. Internal growth rateStep by Step Solution
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