A firm’s profit margin is 16%, and its asset turnover ratio is 0.8. It has no debt, has net income of \$40 per share, and pays dividends of \$20 per share. What is the sustainable growth rate?

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What is  the Sustainable growth rate[removed] %

 Here are the abbreviated financial statements for Planners Peanuts:

 INCOME STATEMENT, 2012 Sales \$ 8,000 Cost 6,300 Net income \$ 1,700

 BALANCE SHEET, YEAR-END 2011 2012 2011 2012 Assets \$ 4,500 \$ 5,000 Debt \$ 853 \$ 1,000 Equity 3,647 4,000 Total \$ 4,500 \$ 5,000 Total \$ 4,500 \$ 5,000

 If the dividend payout ratio is fixed at 50%, calculate the required total external financing for growth rates in 2013 of 25%, 30%, and 35%. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

External
Financing
25% \$ [removed]
30% [removed]
35% [removed]

 Find the sustainable and internal growth rates for a firm with the following ratios: asset turnover = 1.50; profit margin = 6%; payout ratio = 40%; equity/assets = 0.50. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Sustainable growth rate [removed] %
Internal growth rate [removed] %

 Plank’s Plants had net income of \$5,000 on sales of \$100,000 last year. The firm paid a dividend of \$1,100. Total assets were \$200,000, of which \$100,000 was financed by debt.

 a. What is the firm’s sustainable growth rate? (Do not round intermediate calculations. Round your answer to 1 decimal place.)

 Sustainable growth rate [removed] %

 b. If the firm grows at its sustainable growth rate, how much debt will be issued next year? (Do not round intermediate calculations.)

 New debt \$ [removed]

 c. What would be the maximum possible growth rate if the firm did not issue any debt next year? (Do not round intermediate calculations. Round your answer to 1 decimal place.)

 Maximum growth rate [removed] %

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