Problem $18-20$ Sustainable Growth $($LO$3)$

Plank's Plants had net income of $$10,000$ on sales of $$50,000$ last year. The firm paid a dividend of $$400.$ Total assets were $$800,000,$ of which $$400,000$ was financed by debt.

a$.$ What is the firm's sustainable growth rate?

Note: Do not round intermediate calculations. Enter your answer as a percent rounded to $1$ decimal place.r

b$.$ If the firm grows at its sustainable growth rate, how much debt will be issued next year?

Note: Do not round intermediate calculations.

c$.$ What would be the maximum possible growth rate if the firm did not issue any debt next year?

Note: Do not round intermediate calculations. Enter your answer as a percent rounded to $1$ decimal place.