The Lumber Mill has total assets of $591,600, current liabilities of $49,700, dividends paid of $32,000, net sales of $68,400, and net income current liabilities change spontaneously with sales. The tax rate and dividend payout ratios remain constant. If the firm's managers project a firm growth rate of 6 percent for next year, what will be the amount of external financing needed to support this level of growth? Assume the firm is currently operating at full capacity. $55,400. Assume that all costs, assets, and $7324 $6380 $7710 $7050

The Lumber Mill has total assets of $591,600, current liabilities of $49,700, dividends paid of $32,000, net sales of $68,400, and net income current liabilities change spontaneously with sales. The tax rate and dividend payout ratios remain constant. If the firm's managers project a firm growth rate of 6 percent for next year, what will be the amount of external financing needed to support this level of growth? Assume the firm is currently operating at full capacity. $55,400. Assume that all costs, assets, and $7324 $6380 $7710 $7050

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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Question

The Lumber Mill has total assets of $591,600, current liabilities of $49,700, dividends paid of $32,000, net sales of $68,400, and net income of $55,400. Assume that all costs, assets, and current liabilities change spontaneously with sales. The tax rate and dividend payout ratios remain constant. If the firm's managers project a firm growth rate of 6 percent for next year, what will be the amount of external financing needed to support this level of growth? Assume the firm is currently operating at full capacity.

- $7324
- $6380 (selected)
- $7710
- $7050

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