Growth rate could be supported with no outside financing

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You’ve collected the following information about Erna, Inc.: Sales = $ 315,000 Net income = $ 18,400 Dividends = $ 7,200 Total debt = $ 67,000 Total equity = $ 98,000 What is the sustainable growth rate for the company? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Sustainable growth rate % Assuming it grows 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 and 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 and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Growth rate.

Reference no: EM131835059

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