FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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k
ces
You've collected the following information about Caccamisse, Incorporated:
$ 250,000
$ 17,100
$ 5,900
$ 54,000
$ 85,000
Sales
Net income
Dividends
Total debt
Total equity
a. What is the sustainable growth rate for the company?
Note: Do not round intermediate calculations and enter your answer as a percent
rounded to 2 decimal places, e.g., 32.16.
b. Assuming it grows at this rate, how much new borrowing will take place in the
coming year, assuming a constant debt-equity ratio?
Note: Do not round intermediate calculations and round your answer to 2
decimal places, e.g., 32.16.
c. What growth rate could be supported with no outside financing at all?
Note: Do not round intermediate calculations and enter your answer as a percent
rounded to 2 decimal places, e.g., 32.16.
a. Sustainable growth rate
b. Additional borrowing
c. Growth rate
%
%
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Transcribed Image Text:k ces You've collected the following information about Caccamisse, Incorporated: $ 250,000 $ 17,100 $ 5,900 $ 54,000 $ 85,000 Sales Net income Dividends Total debt Total equity a. What is the sustainable growth rate for the company? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. Assuming it grows at this rate, how much new borrowing will take place in the coming year, assuming a constant debt-equity ratio? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. c. What growth rate could be supported with no outside financing at all? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. a. Sustainable growth rate b. Additional borrowing c. Growth rate % %
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