At the growth rate what is the addition to retained earning

Assignment Help Financial Accounting

Reference no: EM132651896

Sales 1100

Retained Earnings 80

Costs 800 Dividends 130

Tax rate 0.3

Assets Liabilities/Equity

Current Assets Current Liabilities

Cash 400 Creditors

Debtors 0 Short Term Notes

Inventory 0

Non-Current Assets Non-Current Liabilities
PP&E 600 Debentures 500
Total Assets 1000

Owner's Equity

Ordinary Shares Retained Profits 500
Ordinary Share 1000

Question a) Given an expected increase in sales of 13%, what is the amount of external funding required?

Question b) At this growth rate what is the addition to retained earnings?

Question c) Calculate the Sustainable Growth Rate (SGR)

Question d) At the SGR what external funding is required?

Question e) What would be the growth rate at which no external financing would be required?

Reference no: EM132651896

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