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What is the external financing needed?

What is the external financing needed?

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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The most recent financial statements for Assouad, Incorporated, are shown here: Income Statement Sales Costs Taxable income Taxes (24%) Net income $ 3,500 2,500 $1,000 240 $760 Multiple Choice What is the external financing needed $1,730.00 $905.00 Current assets Fixed assets $1,472.50 Total $1,522.50 Balance Sheet Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 40 percent dividend payout ratio. As with every other firm in its industry, next year's sales are projected to increase by exactly 25 percent. $ 3,900 5,300 $ 9,200 Current liabilities Long-term debt Equity Total $ 830 3,620 4,750 $ 9,200 X
Transcribed Image Text:The most recent financial statements for Assouad, Incorporated, are shown here: Income Statement Sales Costs Taxable income Taxes (24%) Net income $ 3,500 2,500 $1,000 240 $760 Multiple Choice What is the external financing needed $1,730.00 $905.00 Current assets Fixed assets $1,472.50 Total $1,522.50 Balance Sheet Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 40 percent dividend payout ratio. As with every other firm in its industry, next year's sales are projected to increase by exactly 25 percent. $ 3,900 5,300 $ 9,200 Current liabilities Long-term debt Equity Total $ 830 3,620 4,750 $ 9,200 X
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