Use the following information for Alpha-Beta, Inc. (ABI) for this question. Sales $100,000 Costs $55,000 Depreciation...

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Use the following information for Alpha-Beta, Inc. (ABI) for this question. Sales $100,000 Costs $55,000 Depreciation...

Use the following information for Alpha-Beta, Inc. (ABI) for this question.

Sales	$100,000
Costs	$55,000
Depreciation	$6,000
Dividend paid	$10,000
Retained Earnings Added	$14,500
Total Assets	$85,000
Equity	$45,000
Selling, General and Administrative costs	$0
Tax Rate	35%

If ABI sales grow at the internal growth rate during the following year, what will be the Total Debt Ratio at the end of the year?

		39.0%
		37.1%
		39.3%
		38.1%
		37.6%
		38.6%

business accounting

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