Given the Data Collected for Marion Corporation, Calculate the Following

question 13

Essay

Given the data collected for Marion Corporation, calculate the following: (a) sustainable growth rate.(b) If the company does grow at this rate, determine the new borrowing that needs to occur.(c) What growth rate could be supported with no outside financing?
$$\begin{array} { | l | r | } \hline \text { Data: } & \\\hline \text { Sales } & 400,000 \\\hline \text { Net Income } & 60,000 \\\hline \text { Dividends } & 40,000 \\\hline \text { Total Debt } & 200,000 \\\hline \text { Total Equity } & 50,000 \\\hline\end{array}$$

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Definitions:

Government Intervention

Actions taken by a government to influence or regulate various activities within its economy, typically to correct market failures and promote economic welfare.

Efficiency

The extent to which resources are used in the most effective way to produce goods and services while minimizing waste and costs.

Smoking Ban

A legal restriction or prohibition against smoking tobacco or similar substances in public spaces.

Carbon Dioxide

A colorless, odorless gas produced by burning carbon and organic compounds and by respiration. It is naturally present in air and is absorbed by plants in photosynthesis.