Question
Youve collected the following information about Odyssey, Inc.: Sales $ 210,000 Net income $ 14,400 Dividends $ 9,200 Total debt $ 84,000 Total equity $
Youve collected the following information about Odyssey, Inc.:
Sales | $ | 210,000 | |
Net income | $ | 14,400 | |
Dividends | $ | 9,200 | |
Total debt | $ | 84,000 | |
Total equity | $ | 64,000 | |
What is the sustainable growth rate for the company? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)) |
Sustainable growth rate | % |
If it does grow at this rate, how much new borrowing will take place in the coming year, assuming a constant debtequity ratio? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))
|
Additional borrowing
| $ |
What growth rate could be supported with no outside financing at all? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)) |
Internal growth rate | % |
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