VWX Inc., has sales of $200,000, net income of $35,000, dividend payout of 50%, total assets of
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VWX Inc., has sales of $200,000, net income of $35,000, dividend payout of 50%, total assets of $350,000 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?
Expert Answer:
Net Income 35000 Dividend Payout Ratio 50 Retention Ratio 1 Dividend Payout Ratio Rete... View the full answer
Related Book For 
Fundamentals of Corporate Finance
ISBN: 978-1259024962
6th Canadian edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus, Devashis Mitra, Elizabeth Maynes, William Lim
Posted Date:
