What is the firm sustainable growth rate

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Plank’s Plants had net income of $4,000 on sales of $90,000 last year. The firm paid a dividend of $400. Total assets were $300,000, of which $180,000 was financed by debt. a. What is the firm’s sustainable growth rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.) Sustainable growth rate % b. If the firm grows at its sustainable growth rate, how much debt will be issued next year? (Do not round intermediate calculations.) New debt $ c. What would be the maximum possible growth rate if the firm did not issue any debt next year? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Maximum growth rate %

Reference no: EM131622405

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