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# Sustainable Rate, Additional Borrowing, and Internal Rate

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

Sales \$ 210,000
Net income \$ 14,400
Dividends \$ 9,200
Total debt \$ 84,000
Total equity \$ 64,000

What is the sustainable growth rate for the company? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))

Sustainable growth rate %

If it does grow at this rate, how much new borrowing will take place in the coming year, assuming a constant debt-equity ratio? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))

What growth rate could be supported with no outside financing at all? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))

Internal growth rate %

#### Solution Preview

retation ratio=1-9200/14400=0.36
ROE=14400/64000=0.225
Sustainable growth rate ...

#### Solution Summary

The solution gived detailed steps on solving various questions on sustainable growth rate, additional borrowing and internal growth rate. All formula and calculations are shown and explained.

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