Plank%u2019s Plants had net income of $4,000 on sales of $70,000 last year. The firm paid a dividend of $1,480. Total assets were $200,000, of which $80,000 was financed by debt.
| a. |
What is the firm%u2019s sustainable growth rate? (Do not round intermediate calculations. Round your answer to 1 decimal place.)
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| b. |
If the firm grows at its sustainable growth rate, how much debt will be issued next year? (Do not round intermediate calculations.)
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| c. |
What would be the maximum possible growth rate if the firm did not issue any debt next year? (Do not round intermediate calculations. Round your answer to 1 decimal place.)
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