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The most recent financial statements for Nguyen Company are shown here: Income Statement Sales Costs $ 38,600 32,400 Current assets Fixed assets Balance Sheet $ 16,500 Debt 64,200 Equity $ 29,000 51,700 Taxable income $ 6,200 Total $ 80,700 Total $ 80,700 Taxes (23%) 1,426 $ 4,774 Net income Assets and costs are proportional to sales. The company maintains a constant 40 percent dividend payout ratio and a constant debt- equity ratio. What is the maximum dollar increase in sales that can be sustained assuming no new equity is issued? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Maximum dollar increase

The most recent financial statements for Nguyen Company are shown here: Income Statement Sales Costs $ 38,600 32,400 Current assets Fixed assets Balance Sheet $ 16,500 Debt 64,200 Equity $ 29,000 51,700 Taxable income $ 6,200 Total $ 80,700 Total $ 80,700 Taxes (23%) 1,426 $ 4,774 Net income Assets and costs are proportional to sales. The company maintains a constant 40 percent dividend payout ratio and a constant debt- equity ratio. What is the maximum dollar increase in sales that can be sustained assuming no new equity is issued? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Maximum dollar increase

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
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The most recent financial statements for Nguyen Company are shown here: Income Statement Sales Costs $ 38,600 32,400 Current assets Fixed assets Balance Sheet $ 16,500 Debt 64,200 Equity $ 29,000 51,700 Taxable income $ 6,200 Total $ 80,700 Total $ 80,700 Taxes (23%) 1,426 $ 4,774 Net income Assets and costs are proportional to sales. The company maintains a constant 40 percent dividend payout ratio and a constant debt- equity ratio. What is the maximum dollar increase in sales that can be sustained assuming no new equity is issued? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Maximum dollar increase
Transcribed Image Text:The most recent financial statements for Nguyen Company are shown here: Income Statement Sales Costs $ 38,600 32,400 Current assets Fixed assets Balance Sheet $ 16,500 Debt 64,200 Equity $ 29,000 51,700 Taxable income $ 6,200 Total $ 80,700 Total $ 80,700 Taxes (23%) 1,426 $ 4,774 Net income Assets and costs are proportional to sales. The company maintains a constant 40 percent dividend payout ratio and a constant debt- equity ratio. What is the maximum dollar increase in sales that can be sustained assuming no new equity is issued? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Maximum dollar increase
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