Milton Gaming Company currently has assets of P3,000,000 and accounts payable of P200,000. The firm's sales last year were P10,000,000. If the firm anticipates next year's sales to grow by 8% over that of last year and the firm pays out 25% of its net income in dividends, then what net profit margin is required in order to have the estimated external funds required be equal to zero? O 2.50% 25.00% 27.00% O 2.77%
Milton Gaming Company currently has assets of P3,000,000 and accounts payable of P200,000. The firm's sales last year were P10,000,000. If the firm anticipates next year's sales to grow by 8% over that of last year and the firm pays out 25% of its net income in dividends, then what net profit margin is required in order to have the estimated external funds required be equal to zero? O 2.50% 25.00% 27.00% O 2.77%
Chapter17: The Management Of Cash And Marketable Securities
Section: Chapter Questions
Problem 1P
Related questions
Question
![Milton Gaming Company currently has assets of P3,000,000 and
accounts payable of P200,000. The firm's sales last year were
P10,000,000. If the firm anticipates next year's sales to grow by
8% over that of last year and the firm pays out 25% of its net
income in dividends, then what net profit margin is required in
order to have the estimated external funds required be equal to
zero?
2.50%
25.00%
O 27.00%
O 2.77%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0a7ce9f1-544d-4f69-a7ed-d22f34eb4323%2F11cd0831-73a6-465a-865d-0bba6d72d3cb%2Fgh1fmu_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Milton Gaming Company currently has assets of P3,000,000 and
accounts payable of P200,000. The firm's sales last year were
P10,000,000. If the firm anticipates next year's sales to grow by
8% over that of last year and the firm pays out 25% of its net
income in dividends, then what net profit margin is required in
order to have the estimated external funds required be equal to
zero?
2.50%
25.00%
O 27.00%
O 2.77%
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