Assume the company has no short-term debt. Also assume that all asset turnover, profit margin, and dividend payout ratios remain constant.

1) How much additional debt will Lowell Inc. require to keep the current debt-equity ratio constant if the company were to grow at the sustainable growth rate?

2) What will be the new total debt ratio for Lowell Inc. at the end of the next year if it grew at the internal growth rate?

Sales	$200,000
Debt	95,000
Dividends	5,000
Equity	40,000
Interest rate	7%
Net income	16,000(after all expenses/costs)
Tax rate	30%