Nessa Corporation realized a net income of 2,000 on sales of 40,000 last year. The firm distribute 500 as dividends. It

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answerhappygod
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Nessa Corporation realized a net income of 2,000 on sales of 40,000 last year. The firm distribute 500 as dividends. It

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Nessa Corporation realized a net income of 2,000 on sales of 40,000 last year. The firm distribute 500 as dividends. It had a total assets of 100,000 of which 40,000 was financed by debt.
a. what is the firm's sustainable growth rate?
b. if the firm's growth at its sustainable growth rate, how much debt will be issued next year?
c. what would be the maximum possible growth rate if the firm did not issue any debt next year?
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