Question: I need questions a, e, h, i. Please Show your work, thank you. Based on the following information for Barely Beagle Brothers Mining Company, what

I need questions a, e, h, i. Please Show your work, thank you.

  1. Based on the following information for Barely Beagle Brothers Mining Company, what is the EFN If analysts predicted sales to grow by 10% in 2020?
  2. What is Barely Beagle's EFN if the company was operating at 60% capacity for net fixed assets? Assume that Barely Beagle plans to sell any excess fixed assets.
  3. What is Barely Beagle's EFN if the company was operating at 60% capacity for net fixed assets? Assume that Barely Beagle does not plan to sell any excess fixed assets.
  4. What is Barely Beagle's EFN if the company operated at 95% capacity for net fixed assets? Assume that Barely Beagle plans to sell any excess fixed assets.
  5. What growth rate can Barely Beagle Brothers maintain if they use no external financing?
  6. What is Barely Beagle Brothers' sustainable growth rate?
  7. What is the difference between the internal growth rate and the sustainable growth rate?
  8. Is it possible that a company that maintains a sustainable growth rate would take on a growing percentage of debt in its capital structure?
  9. When thinking about (but not calculating) the sustainable growth rate, what are the determinants of growth?

Barely Beagle Brothers Mining Company 2019 Financial Statements

Income Statement

Balance Sheet

Assets

Liabilities & Owners' Equity

Sales

$4,250

Current Assets

$900

Current Liabilities

$500

Costs

$3,875

Net Fixed Assets

$2,200

Long-Term Debt

$1,800

Taxable Income

$375

Owner's Equity

$800

Taxes (21%)

$78

Total Assets

$3,100

Total Liability & Equity

$3,100

Net Income

$297

Dividends Paid

$98

Additions to Retained Earnings

$199

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