Here are the abbreviated financial statements for Planner's Peanuts: INCOME STATEMENT, 2022 Sales Cost Net income $ 7,000 5,500 $ 1,500 2021 BALANCE SHEET, YEAR-END 2022 Assets $ 2,500 $ 3,000 Total $2,500 $ 3,000 Debt Equity Total 2021 $ 853 1,647 $ 2,500 2022 $ 1,000 2,000 $ 3,000 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) 40%, (b) 45%, and (c) 50%. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. External Financing Need (a) 40% (b) 45% (၁) 50%

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
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Here are the abbreviated financial statements for Planner's Peanuts:
INCOME STATEMENT, 2022
Sales
Cost
Net income
$ 7,000
5,500
$ 1,500
2021
BALANCE SHEET, YEAR-END
2022
Assets
$ 2,500
$ 3,000
Total
$2,500
$ 3,000
Debt
Equity
Total
2021
$ 853
1,647
$ 2,500
2022
$ 1,000
2,000
$ 3,000
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) 40%, (b) 45%, and (c) 50%.
Note: Do not round intermediate calculations. Round your answers to 2 decimal places.
External Financing
Need
(a)
40%
(b)
45%
(၁)
50%
Transcribed Image Text:Here are the abbreviated financial statements for Planner's Peanuts: INCOME STATEMENT, 2022 Sales Cost Net income $ 7,000 5,500 $ 1,500 2021 BALANCE SHEET, YEAR-END 2022 Assets $ 2,500 $ 3,000 Total $2,500 $ 3,000 Debt Equity Total 2021 $ 853 1,647 $ 2,500 2022 $ 1,000 2,000 $ 3,000 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) 40%, (b) 45%, and (c) 50%. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. External Financing Need (a) 40% (b) 45% (၁) 50%
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