Assume the firm has a constant dividend payout ratio and a projected sales increase of 10 percent. All costs, assets, and current liabilities vary directly with sales. The firm is currently at full production. What is the external financing need? Currently, the firm's sales =$4,700, net income is $420, total assets-7890, dividends-125, A/P =790, LTD=3130, and common stock-2780, and the Balance-sheet retained=1190. $462.00 O $385.50 O $324.50 O $137.50

Q: Goldilochs Inc. reported sales of $8 million and net income of $1.5 million. The firm has $10.5…

A: The sustainable growth rate is the maximum growth rate that a company can sustain without having to…

Q: A firm wishes to maintain an internal growth rate of 7.7 percent and a dividend payout ratio of 35…

A: Retention ratio = 1 - Dividend payout ratio = 1 - 0.35 = 0.65

Q: A firm expects to have a net income of $8,000,000 during the next year. Its target capital structure…

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Q: Suppose Alcatel-Lucent has an equity cost of capital of 10.4%, market capitalization of $11.52…

A: WACC = (Cost of equity x Weight of equity) + (Cost of debt x (1-tax rate) x Weight of debt)Weight of…

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Q: Assume that a firm has Sales of $25,000,000, total assets of $20,000,000, current assets of…

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Q: Plank’s Plants had net income of $3,000 on sales of $40,000 last year. The firm paid a dividend of…

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Q: what is the firm?s ROA?

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Q: A firm plans to grow at an annual rate of at least 16%. Its return on equity is 24%. Suppose the…

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Q: Suppose Alcatel-Lucent has an equity cost of capital of 10.2%, market capitalization of $11.20…

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