You've collected the following information about Molino, Inc. 190,000 Sales Net income $13,600 Dividends 8,800 bt $ 76,000 60,000 Total equity a. What is the sustainable growth rate for the company? (Do not round intermediate b. If it does grow at this rate, how much new borrowing will take place in the coming c. What growth rate could be supported with no outside financing at all? (Do not round calculations and enter your answer as a percent rounded to 2 decimal places, e.g, 3216.) year, assuming a constant debt-equity ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Answer is complete but not entirely correct. a. Sustainable growth rate b. Additional borrowing c. Internal growth rate 8.69 )% 6,600.92 3.65 196

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter17: Dynamic Capital Structures And Corporate Valuation
Section: Chapter Questions
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You've collected the following information about Molino, Inc.
190,000
Sales
Net income $13,600
Dividends 8,800
bt $ 76,000
60,000
Total equity
a. What is the sustainable growth rate for the company? (Do not round intermediate
b. If it does grow at this rate, how much new borrowing will take place in the coming
c. What growth rate could be supported with no outside financing at all? (Do not round
calculations and enter your answer as a percent rounded to 2 decimal places, e.g,
3216.)
year, assuming a constant debt-equity ratio? (Do not round intermediate calculations
and round your answer to 2 decimal places, e.g., 32.16.)
intermediate calculations and enter your answer as a percent rounded to 2 decimal
places, e.g., 32.16.)
Answer is complete but not entirely correct.
a. Sustainable growth rate
b. Additional borrowing
c. Internal growth rate
8.69 )%
6,600.92
3.65 196
Transcribed Image Text:You've collected the following information about Molino, Inc. 190,000 Sales Net income $13,600 Dividends 8,800 bt $ 76,000 60,000 Total equity a. What is the sustainable growth rate for the company? (Do not round intermediate b. If it does grow at this rate, how much new borrowing will take place in the coming c. What growth rate could be supported with no outside financing at all? (Do not round calculations and enter your answer as a percent rounded to 2 decimal places, e.g, 3216.) year, assuming a constant debt-equity ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Answer is complete but not entirely correct. a. Sustainable growth rate b. Additional borrowing c. Internal growth rate 8.69 )% 6,600.92 3.65 196
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