5. EFN [LO2] The most recent financial statements for Assouad, Inc., are shown here: Income Statement Balance Sheet D Q Sales $8,700 Current Current assets Fixed assets $ 4,200 10,400 Costs 5,600 $3,100 Taxable income 3,800 Q Taxes (25%) 775 Total $14,600 8,900 Net income $2,325 Total $14,600 Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 40 percent dividend payout ratio. As with every other firm in next year's sales are projected to increase by exactly 15 percent. What is the external financing needed? liabilities Long-term debt Equity
5. EFN [LO2] The most recent financial statements for Assouad, Inc., are shown here: Income Statement Balance Sheet D Q Sales $8,700 Current Current assets Fixed assets $ 4,200 10,400 Costs 5,600 $3,100 Taxable income 3,800 Q Taxes (25%) 775 Total $14,600 8,900 Net income $2,325 Total $14,600 Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 40 percent dividend payout ratio. As with every other firm in next year's sales are projected to increase by exactly 15 percent. What is the external financing needed? liabilities Long-term debt Equity
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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