Answer the questions that follow this table TABLE 2

Income Statement
For the Year 2019
Sales	$28,400
Cost of goods sold	21,200
Depreciation	2,700
Earnings before interest and taxes	$ 4,500
Interest paid	850
Taxable income	$ 3,650
Taxes	1,400
Net income	$ 2,250
Dividends $900
Balance Sheet
End-of-Year 2019
Cash	$ 550
Accounts receivable	2,450
Inventory	4,700
Total current assets	$ 7,700
Net fixed assets	16,900
Total assets	$24,600
Accounts payable	$ 2,700
Long-term debt	9,800
Common stock ($1 par value)	8,000
Retained earnings	4,100
Total Liab. & Equity	$24,600
4. Assume this firm decides to maintain a constant debt-equity ratio, what rate of growth can it maintain, assuming that no additional external financing is available Hint: Think about sustainable growth and define it)	Explain
5. Assume that the company wants to grow without leveraging, that is, no debt. What will be its growth rate (Think about internal growth rate and define it).
6. Assume the business is currently operating at maximum capacity. All costs, assets, and current liabilities vary directly with sales. The tax rate and the dividend payout ratio will remain constant. How much additional debt is required if no new equity is raised and sales are projected to increase by 5 percent?
7. Now assume the firm is currently operating at 84 percent of capacity. All costs and net working capital vary directly with sales. The tax rate, the profit margin, and the dividend payout ratio will remain constant. How much additional debt is required if no new equity is raised and sales are projected to increase by 12 percent?

8. What is meant by Capital intensity? Give an example to fully describe