Sustainable Growth and Outside Financing. You"ve collected the following information about Fox, Inc.:
Sales = $ 165,000
Net income = $19,000
Dividends = $4,500
Total debt = $49,000
Total equity = $72,000
What is the sustainable growth rate for the company? If it does grow at this rate, how much new borrowing wil1 take place in the coming year. assuming a constant debt equity ratio? What growth rate could be supported with no outside financing at all?
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