Nebula Corp. reported the following data for the year 2525: • • • • • Total assets at year-end: $3,000 Sales revenue: $15,000 Net income: $500 Dividends: $200 Retained earnings added: $300 The company uses no external financing and wants to maximize growth using only retained earnings. In 2526, the asset turnover, net profit margin, payout ratio, and P/E ratio will remain unchanged. What will be the sales growth rate for 2526?
Nebula Corp. reported the following data for the year 2525: • • • • • Total assets at year-end: $3,000 Sales revenue: $15,000 Net income: $500 Dividends: $200 Retained earnings added: $300 The company uses no external financing and wants to maximize growth using only retained earnings. In 2526, the asset turnover, net profit margin, payout ratio, and P/E ratio will remain unchanged. What will be the sales growth rate for 2526?
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 19P
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cost accounting
Transcribed Image Text:Nebula Corp. reported the following data for the year
2525:
•
•
•
•
•
Total assets at year-end: $3,000
Sales revenue: $15,000
Net income: $500
Dividends: $200
Retained earnings added: $300
The company uses no external financing and wants
to maximize growth using only retained earnings.
In 2526, the asset turnover, net profit margin,
payout ratio, and P/E ratio will remain unchanged.
What will be the sales growth rate for 2526?
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