What growth rate could be supported with no outside

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Reference no: EM132048463

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: EM132048463

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