What is the sustainable growth rate-maximum growth rate

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Reference no: EM131593556

Plank’s Plants had net income of $6,000 on sales of $90,000 last year. The firm paid a dividend of $2,100. Total assets were $500,000, of which $350,000 was financed by debt.

A. What is the sustainable growth rate?

B. How much debt will be issued next year (new debt)

C. What is the maximum growth rate?

Reference no: EM131593556

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