Assuming constant debt–equity ratio

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Reference no: EM131825430

You’ve collected the following information about Draiman, Inc.: Sales $ 190,000 Net income $ 13,600 Dividends $ 8,800 Total debt $ 76,000 Total equity $ 60,000 What is the sustainable growth rate for the company? (Do not round intermediate calculations. Enter your answer as a percent rounded 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 debt–equity 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. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Internal growth rate %

Reference no: EM131825430

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