What is the sustainable growth rate for the company


You've collected the given information about Odyssey, Inc.:

Sales              $210,000
Net income      $14,400
Dividends        $9,200
Total debt        $84,000
Total equity      $64,000

What is the sustainable growth rate for the company? (Do not round intermediate calculations. Round your answer 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? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))

Internal growth rate

Solution Preview :

Prepared by a verified Expert
Finance Basics: What is the sustainable growth rate for the company
Reference No:- TGS01449742

Now Priced at $25 (50% Discount)

Recommended (90%)

Rated (4.3/5)