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
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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and the company wishes to maintain a constant payout ratio. Next year's sales are projected to
What is the external financing needed?
5. EFN [LO2] The most recent financial statements for Assouad, Inc., are shown here:
Income Statement
Balance Sheet
5 Q
Sales
$8,700
5,600
$3,100
Current assets
Fixed assets
$ 4,200
10,400
Costs
Taxable income
Current
liabilities
Long-term
debt
Equity
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?
Transcribed Image Text:and the company wishes to maintain a constant payout ratio. Next year's sales are projected to What is the external financing needed? 5. EFN [LO2] The most recent financial statements for Assouad, Inc., are shown here: Income Statement Balance Sheet 5 Q Sales $8,700 5,600 $3,100 Current assets Fixed assets $ 4,200 10,400 Costs Taxable income Current liabilities Long-term debt Equity 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?
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