You’ve collected the following information about Draiman, Inc.:
Sales $ 245,000
Net income $ 15,800
Dividends $ 9,900
Total debt $ 98,000
Total equity $ 71,000
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?
Internal growth rate %