I have done this assignment. I want to make sure it is correct before submitting it.

You have been asked to calculate two growth rates, the internal growth rate and the sustainable growth rate for the company. You know that the internal growth rate is the rate the company can maintain with internal financing only. A higher growth rate is possible but will need external funding. The sustainable growth rate is the maximum growth rate company can maintain with no external equity financing while keeping the leverage ratio constant. The two rates can be computed as follows:

Internal growth rate = ROA*b / (1-ROA*b) Sustainable growth rate = ROE*b / (1-ROE*b) Where b is blowback ratio, defined as 1 - Dividend Payout Ratio

1. You were told that sales are projected to grow 15% next year. Your boss asked you to check whether a 15% growth rate is possible without changing the debt/equity ratio. If yes, you will need to compute how much external financing is required (You know that you will need to work out the pro forma financial statements for a 15% sales increase, using the percentage of sales approach.
2. Please make sure you explain your answer.