A company has sales of 5000 and total assets of 3000 the


A company has sales of $5,000 and total assets of $3,000. The debt-equity ratio is .25 and ROE is .15. The company retained earnings in the amount of $240 this year.

a. What is this company’s net income?

b. At what rate can this company grow if it would like to maintain its debt-equity ratio and not issue any new equity for the foreseeable future?

c. What is this company’s total debt ratio?

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Financial Management: A company has sales of 5000 and total assets of 3000 the
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