A company has sales of $5,000 and total assets of $3,000. The debt-equity ratio is .25 and ROE is .15. The company retained earnings in the amount of $240 this year.
a. What is this company’s net income?
b. At what rate can this company grow if it would like to maintain its debt-equity ratio and not issue any new equity for the foreseeable future?
c. What is this company’s total debt ratio?