External Funds Needed The Optical Scam Company has forecast a 20 per cent sales growth rate for

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External Funds Needed The Optical Scam Company has forecast a 20 per cent sales growth rate for next year. The current financial statements are shown here:

External Funds Needed The Optical Scam Company has forecast a

a. Using the equation from the chapter, calculate the external funds needed for next year.
b. Construct the firm's statement of financial position for next year, and confirm the external funds needed you calculated in part (a).
c. Calculate the sustainable growth rate for the company.
d. Can Optical Scam eliminate the need for external funds by changing its dividend policy? What other options are available to the company to meet its growth objectives?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Corporate Finance

ISBN: 978-0077861759

10th edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe

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