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:

Formic Acid

The simplest carboxylic acid, with the formula HCOOH, used industrially and as an antiseptic.

Ka

An equilibrium constant for the dissociation of a weak acid into its proton and conjugate base in solution; a measure of acid strength.

pKa

A measure of the acidity of a hydrogen atom in a molecule, indicating the tendency of the molecule to donate a proton.

Conjugate Acid

The species that is formed when a base gains a proton.