Transcribed Image Text
You’ve collected the following information about Erna, Inc.:Sales=$300,000Net income=$18,100Dividends=$6,900Total debt=$64,000Total equity=$95,000What is the sustainable growth rate for the company? (Donot round intermediate calculations and enter your answer as apercent rounded to 2 decimal places, e.g., 32.16.) Sustainable growth rate % Assuming it grows at this rate, how much new borrowing will takeplace in the coming year, assuming a constant debt–equity ratio?(Do not round intermediate calculations and round youranswer to 2 decimal places, e.g., 32.16.) Additional borrowing $ What growth rate could be supported with no outside financing atall? (Do not round intermediate calculations and enter youranswer as a percent rounded to 2 decimal places, e.g.,32.16.) Growth rate %