Find what will be total debt ratio at the end of the year

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Use the following information for Motion Research, Inc. (MRI)

Sales$200,000

Costs $105,000

SG&A $20,000

Depreciation $16,000

Dividend paid $6,000

Retained Earnings Added $18,000

Total Assets $85,000

Equity $45,000

Tax Rate 35%

Problem 1: If MRI sales grow at the internal growth rate during the following year, what will be the Total Debt Ratio at the end of the year?

A. 34.88%
B. 35.99%
C. 36.54%
D. 34.33%
E. 37.09%
F. 35.43%

Reference no: EM132736485

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