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remain at $3,000. Assuming that income statement and balance sheet relationships to sales are unchanged and that the tax rate is 20%. Sales COGS EBIT Interest EBT Tax Net income $150,000 $120,000 $30,000 $3,000 $27,000 $5,400 $21,600 Alter, Inc. 2015 Assets $145,000 Current liabilities. $5,000 Total long-term debt $60,000 Total equity $80,000 Total liabilities & equity $145,000

remain at $3,000. Assuming that income statement and balance sheet relationships to sales are unchanged and that the tax rate is 20%. Sales COGS EBIT Interest EBT Tax Net income $150,000 $120,000 $30,000 $3,000 $27,000 $5,400 $21,600 Alter, Inc. 2015 Assets $145,000 Current liabilities. $5,000 Total long-term debt $60,000 Total equity $80,000 Total liabilities & equity $145,000

Essentials Of Investments
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
Section: Chapter Questions
Problem 1PS
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Alter Inc. plans to grow sales at a 10% annual rate for 2016. Interest expense in 2016 is expected to remain at $3,000. Assuming that income statement and balance sheet relationships to sales are unchanged and that the tax rate is 20%. Sales COGS EBIT Interest EBT Tax Net income Dividends $150,000 $120,000 $30,000 $3,000 $27,000 $5,400 $21,600 $10,800 What is external funding need for 2016? O Less than $40,000 O Above $60,000 O Between $40,001 and $50,000 O Between $50,001 and $60,000 Alter, Inc. 2015 Assets $145,000 Current liabilities $5,000 Total long-term debt $60,000 Total equity $80,000 Total liabilities & equity $145,000
Transcribed Image Text:Alter Inc. plans to grow sales at a 10% annual rate for 2016. Interest expense in 2016 is expected to remain at $3,000. Assuming that income statement and balance sheet relationships to sales are unchanged and that the tax rate is 20%. Sales COGS EBIT Interest EBT Tax Net income Dividends $150,000 $120,000 $30,000 $3,000 $27,000 $5,400 $21,600 $10,800 What is external funding need for 2016? O Less than $40,000 O Above $60,000 O Between $40,001 and $50,000 O Between $50,001 and $60,000 Alter, Inc. 2015 Assets $145,000 Current liabilities $5,000 Total long-term debt $60,000 Total equity $80,000 Total liabilities & equity $145,000
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