You've collected the following information about Draiman, Inc.: Sales = $195,000 Net income = $16,200 Dividends =
Question:
You've collected the following information about Draiman, Inc.:
Sales = $195,000
Net income = $16,200
Dividends = $9,400
Total debt = $73,000
Total equity = $55,000
What is the sustainable growth rate for the company? If it does grow at this rate, how much new borrowing will take place in the coming year, assuming a constant debt-equity ratio? What growth rate could be supported with no outside financing at all?
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Related Book For 
Fundamentals of Corporate Finance
ISBN: 978-0077861704
11th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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