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#1 Income Statement: Sales $5,700, Costs 4,000, Ta...

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#1 Income Statement: Sales $5,700, Costs 4,000, Taxable income $1,500, Taxes (34%) 510, Net Income 990 Balance Sheet: Current Assets $3,900, Fixed Assets 8,100, Total $12,000 Current Liabilites $2,200, Long Term Debt 3,750, Equity 6,050 Total $12,000 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 it's industry, next years sales are projected to increase by exactally 15%. What is the external financing needed? #2 Income Statement: Sales $17,500, Costs 11,800, Taxable income $5,700, Taxes (40%) 2,280, Net Income 3,420 Balance Sheet: Current Assets $10,400, Fixed Assets 28,750, Total $39,150 Debt $17,500, Equity 21,650 Total $39,150 Assets and costs are proportional to sales. Debt and Equity are not. The company maintains a constant 30 percent dividend payout ratio. No external equity financing is possible. What is the internal growth rate?

 

Paper#7050 | Written in 18-Jul-2015

Price : $25
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