Problem:
You've collected the following 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))
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))
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))