
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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The most recent financial statements for GPS, Inc, are shown here: income statement: sales $23,300, cost 15,700, taxable income $7,600, taxes (40%) 3,040, net income $4,560, assets $112,000, total $112,000 Debt $44,600, equity 68,400, total $112, 000. Assets and cost are proportional to sales. Debt and equity are not. A dividend of $1,540 was paid, and the company wishes to maintain a constant payout ratio. Next years sales are projected to be $28,300. What is the external financing needed?
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