Question

You’ve collected the following information about Odyssey, Inc.:   Sales $ 241,813   Net income $ 10,096   Dividends...

You’ve collected the following information about Odyssey, Inc.:

  Sales $ 241,813
  Net income $ 10,096
  Dividends $ 4,376  
  Total debt $ 95,501  
  Total equity $ 63,883  

If the company grows at the sustainable growth rate, how much new borrowing will take place in the coming year, assuming a constant debt–equity ratio? (round 2 decimal places)

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