Assume the firm has a constant dividend payout ratio and a projected sales increase of 10 percent. All costs, assets, and current liabilities vary directly with sales. The firm is currently at full production. What is the external financing need? Currently, the firm's sales =$4,700, net income is $420, total assets-7890, dividends-125, A/P =790, LTD=3130, and common stock-2780, and the Balance-sheet retained=1190. $462.00 O $385.50 O $324.50 O $137.50
Assume the firm has a constant dividend payout ratio and a projected sales increase of 10 percent. All costs, assets, and current liabilities vary directly with sales. The firm is currently at full production. What is the external financing need? Currently, the firm's sales =$4,700, net income is $420, total assets-7890, dividends-125, A/P =790, LTD=3130, and common stock-2780, and the Balance-sheet retained=1190. $462.00 O $385.50 O $324.50 O $137.50
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter10: Forecasting Financial Statement
Section: Chapter Questions
Problem 3QE
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