Sustainable growth and outside financing

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Sustainable Growth and Outside Financing

You've collected the follow-ing information about Molino, Inc.:

Sales = $215,000

Net income = $17,300

Dividends = $9,400

Total debt = $77,000

Total equity = $59,000

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?

Reference no: EM132658543

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