5. Last year Handorf-Zhu Inc. had $850 million of sales, and it had $425 million of fixed assets that were used at only 85% of capacity. What is the maximum sales growth rate the company could achieve before it had to increase its fixed assets? a. 16.94% b. 17.47% c. 19.06% d. 18.88% e. 17.65%

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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5. Last year Handorf-Zhu Inc. had $850 million of sales, and it had $425 million of fixed assets that
were used at only 85% of capacity. What is the maximum sales growth rate the company could
achieve before it had to increase its fixed assets?
a. 16.94%
b. 17.47%
c. 19.06%
d. 18.88%
e. 17.65%
Transcribed Image Text:5. Last year Handorf-Zhu Inc. had $850 million of sales, and it had $425 million of fixed assets that were used at only 85% of capacity. What is the maximum sales growth rate the company could achieve before it had to increase its fixed assets? a. 16.94% b. 17.47% c. 19.06% d. 18.88% e. 17.65%
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