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

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter7: Corporate Valuation And Stock Valuation

Section: Chapter Questions

Problem 1P: Ogier Incorporated currently has $800 million in sales, which are projected to grow by 10% in Year 1...

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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
$7710
$7050

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