Edgefield Excavation Company has total ssets of $4,976,456, sales of $1,225,700, nd net income of $587,000. The
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Edgefield Excavation Company has total ssets of $4,976,456, sales of $1,225,700, nd net income of $587,000. The company's management expects sales to grow by 9 percent next year. ll costs (including taxes) nd ssets vary directly with sales, nd the firm expects to maintain payout ratio of 35 percent. Calculate the external funds needed (EFN) by Edgefield. What would Edgefield's payout ratio have to be in order for the company's EFN to equal zero?
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External funds needed EFN New investments ddition to retained earnings New invest...View the full answer
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Related Book For 
Fundamentals of Corporate Finance
ISBN: 978-1118845899
3rd edition
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
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