Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Youve collected the following information about Odyssey, Inc.: Sales $ 220,000 Net income $ 14,800 Dividends $ 9,400 Total debt $ 88,000 Total equity $

Youve collected the following information about Odyssey, Inc.:

Sales $ 220,000 Net income $ 14,800 Dividends $ 9,400 Total debt $ 88,000 Total equity $ 66,000

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 ____%?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finance At 40 Financial Intelligence

Authors: MOIRA O'NEILL Moira O'Neill

1st Edition

1408101114, 978-1408101117

More Books

Students also viewed these Finance questions