What is the sustainable growth rate for the company

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Reference no: EM131797520

Question: You've collected the following information about Erna, Inc.:


Sales	=	$	260,000
Net income	=	$	17,300
Dividends	=	$	6,100
Total debt	=	$	56,000
Total equity	=	$	87,000

What is the sustainable growth rate for the company?

Assuming it grows at this rate, how much new borrowing will take place in the coming year, assuming a constant debt-equity ratio?

What growth rate could be supported with no outside financing at all?

Reference no: EM131797520

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