What is the particular growth rate for the next year

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Intro- Your company's most recent income statement and balance are given below:

Income statement ($ million)           Balance sheet ($ million)

Sales 17                         Current assets 11              Debt 16.5

Costs 13.6                    Fixed assets 44                  Equity 38.5

Net income 3.4              Total assets 55                   Total 55

Sales, assets and costs are expected to grow by the same rate next year, while debt will stay constant. The company is expected to pay NO dividends next year.

Question 1: What is the particular growth rate for the next year, at which company will need zero eternal financing (EFN = 0)? What is the internal growth rate?

Reference no: EM132634834

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