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Given the Data Collected for Marion Corporation, Calculate the Following

Question 121

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Given the data collected for Marion Corporation, calculate the following: (a) sustainable growth rate.(b) If the company does grow at this rate, determine the new borrowing that needs to occur.(c) What growth rate could be supported with no outside financing?
 Data:  Sales 400,000 Net Income 60,000 Dividends 40,000 Total Debt 200,000 Total Equity 50,000\begin{array} { | l | r | } \hline \text { Data: } & \\\hline \text { Sales } & 400,000 \\\hline \text { Net Income } & 60,000 \\\hline \text { Dividends } & 40,000 \\\hline \text { Total Debt } & 200,000 \\\hline \text { Total Equity } & 50,000 \\\hline\end{array}

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