Plank’s Plants had net income of $2,000 on sales of $100,000 last year. The firm paid a dividend of $320. Total assets were $100,000, of which $30,000 was financed by debt.

a. What is the firm’s sustainable growth rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.)

 Sustainable growth rate %

b. If the firm grows at its sustainable growth rate, how much debt will be issued next year? (Do not round intermediate calculations.)

  New debt $   

c. What would be the maximum possible growth rate if the firm did not issue any debt next year? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

  Maximum growth rate %