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ZAX, Co. has the following items on its balance sheet. Assets Liabilities and Equity Cash $49,400 Debt $99,100 PPE $346,500 Equity $296,800 Its net income

ZAX, Co. has the following items on its balance sheet.

Assets

Liabilities and Equity

Cash

$49,400

Debt

$99,100

PPE

$346,500

Equity

$296,800

Its net income this year is $20,300, and it pays dividends of $4,900. If it grows at its internal growth rate, what will its D/E ratio be next year?

1. The internal growth rate is ___ % (round to 2 decimals)

2. The ending total assets will be ___ $ (round to nearest dollar)

3. The debt/equity ratio will be ___ (round to 3 decimals)

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