The sustainable growth rate is%. (Round to three decimal place.) The ending total assets at the sustainable growth rate will be $ (Round to the nearest dollar.) Because the firm grew at its sustainable growth rate, its debt/equity ratio remains constant at 0.717826 and the debt-to-assets ratio will be 0.417869. Thus, the new debt in the capital structure will be 0.417869x$1,084,312=$453,100. Since the firm started at $420,000, it will issue about $33,100 in additional debt. Is the above statement true or false? (Select from the drop-down menu.)
The sustainable growth rate is%. (Round to three decimal place.) The ending total assets at the sustainable growth rate will be $ (Round to the nearest dollar.) Because the firm grew at its sustainable growth rate, its debt/equity ratio remains constant at 0.717826 and the debt-to-assets ratio will be 0.417869. Thus, the new debt in the capital structure will be 0.417869x$1,084,312=$453,100. Since the firm started at $420,000, it will issue about $33,100 in additional debt. Is the above statement true or false? (Select from the drop-down menu.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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