Kizspy | Question: 20
(Choose 1 answer)
The table below is financial statement of SafeNet Company If SafeNet Company decides to maintain a constant debt-equity ratio, what sustainable growth rate can they maintain?
(Please select nearest number.)
Sales
COGS
SafeNet Company 2016 Income Statement
Depreciaton
EBIT
Net Income
SafeNet Company
2016 Balance Sheet
$ 12,500.0
15625 Cash
990.0 Accounts payable
$ 1.330.0
$ 8,100.0
Accounts recievable
S
840.0 Long-term debt.
$ 3.700.0
$ 1.700.0
Inventory
620.0 Common stock
$ 4.600.0
$ 2,700.0
Total
$ 2,450.0 Retained earnings
$ 2.840.0
Interest paid Taxable Income
$ 864.0
Net fixed assets
$ 10,020.0
$ 1,836.0
Total Assets
$ 12,470.0 Total liabilities & equity $ 12,470.0
Taxes
$ 406.0
$ 1,430.0
S
953.44
A. 9.0%
Β. 11.3%
C. 14.8%
Dividends
$ 474.0
Addition to retained earnings
$ 956.0
D. 17.6%
