Assets are proportional to sales. If the dividend payout ratio is fixed at 50%, calculate the required total external financing for growth rates in 2023 of (a) 25%, (b) 30%, and (c) 35%. Note: Do not round intermediate calculations. Round your answers to 2 decimal places.
Assets are proportional to sales. If the dividend payout ratio is fixed at 50%, calculate the required total external financing for growth rates in 2023 of (a) 25%, (b) 30%, and (c) 35%. Note: Do not round intermediate calculations. Round your answers to 2 decimal places.
Chapter10: Valuing Early-stage Ventures
Section: Chapter Questions
Problem 1aM
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Transcribed Image Text:Here are the abbreviated financial statements for Planner's Peanuts:
(b)
(c)
INCOME STATEMENT, 2022
Sales
Cost
Net income
Assets
Total
$ 5,500
4,300
$ 1,200
25%
30%
35%
2021
$ 8,500
IS
S
$8.500
BALANCE SHEET, YEAR-END
2022
$ 9,000
$ 9,000
Debt
Equity
Total
Answer is complete but not entirely correct.
External
Financing Need
2.275.00
2,726.00
3,177.00
Assets are proportional to sales. If the dividend payout ratio is fixed at 50%, calculate the required total external financing
for growth rates in 2023 of (a) 25%, (b) 30%, and (c) 35%.
Note: Do not round intermediate calculations. Round your answers to 2 decimal places.
2021
$ 823
7,677
$ 8.500
2022
$ 1.000
8,000
$ 9.000
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