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Owen's Electronics has 90 operating plants in seven southwestern states

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Owen's Electronics has 90 operating plants in seven southwestern states. Sales for last year were $100 million, and the balance sheet at year-end is similar in percentage of sales to that of previous years (and this will continue in the future).;All assets (including fixed assets) and current liabilities will vary directly with sales.;Owen's has an aftertax profit margin of 7 percent and a dividend payout ratio of 40 percent. If sales grow by 10 percent next year, determine how many dollars of new funds are needed to finance the growth.;(See attachment for full question);Problem 21.;Owen???s Electronics has 90 operating plants in seven southwestern;states. Sales;for last year were $100 million, and the balance sheet at year-end is;similar in;percentage of sales to that of previous years (and this will continue in;the future).;All assets (including fixed assets) and current liabilities will vary;directly;with sales.;Owen???s has an aftertax profit mar gin of 7 percent and a dividend;payout ratio;of 40 percent.;If sales grow by 10 percent next year, determine how many dollars of new;funds are needed to finance the growth.

 

Paper#26331 | Written in 18-Jul-2015

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