VWX Inc., has sales of $500,000, net income of $80,000, dividend payout of 50%, total assets of $700,000 and target debt-equity ratio of 1.5. If the company grows at its sustainable growth rate in the coming year, how much new borrowing (to the nearest dollar) will take place?

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A: retained earnings = 90500*(1-15%) = 76925   net income = 76925*(1+9.5%)= 84232.875

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