a. What is the maximum possible growth rate in 2016 for Planners Peanuts (see problem 9) if the payout ratio remains at 50% and

Income Statement, 2015

Sales................$2,000

Costs.................1.500

Net income.........$ 500

i. No external debt or equity is to be issued?
ii. The firm maintains its 2015 debt-to-equity ratio but issues no equity?
b. Calculate the required external financing and the new capital structure for the two growth rates.

Balance Sheet, Year-End 2014 2014 2015 2015 $3,000 Debt S 833 Assets S2,500 S1,000 Equity Total 2,000 1,667 Total $3,000 $3,000 S2,500 S2,500