Question
Youve collected the following information about Odyssey, Inc.: Sales $ 240,000 Net income $ 15,600 Dividends $ 9,800 Total debt $ 96,000 Total equity $
Youve collected the following information about Odyssey, Inc.:
Sales | $ | 240,000 | |
Net income | $ | 15,600 | |
Dividends | $ | 9,800 | |
Total debt | $ | 96,000 | |
Total equity | $ | 70,000 |
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)) |
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