If the dividend payout ratio in problem 9 is fixed at 50%, calculate the required total external

Question:

If the dividend payout ratio in problem 9 is fixed at 50%, calculate the required total external financing for growth rates in 2016 of 15%, 20%, and 25%.

Income Statement, 2015

Sales................$2,000

Costs.................1.500

Net income.........$ 500

Balance Sheet, Year-End 2014 2014 2015 2015 $3,000 Debt S 833 Assets S2,500 S1,000 Equity Total 2,000 1,667 Total $3,000

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...