Sustainable Growth rate

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter9: Corporate Valuation And Financial Planning
Section: Chapter Questions
Problem 2P: AFN Equation Refer to Problem 9-1. What would be the additional funds needed if the companys...
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Sales 4000000s

2. Net incouae 400000s

3. Dividends 240000

4 Debt 400000s

5- Total equity 800000s including 400000S RE

6- Total assets 1400000s

Calculate

1- Sustainable Growth rate

2- If the extracted percentage is approved in (1)what is the amount of external financing (the borrower) for the next year.

3- Calculate the growth rate that doesnot require external financing-

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