Management is concerned with its sales, net income, and new capital needs during the coming two years.
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Management is concerned with its sales, net income, and new capital needs during the coming two years. Mr. X, calculating a sales growth rate of 6.67 %, and a profit margin of 10 percent, believes that no new capital will be needed. Ms Y, has calculated a sales growth rate of 5.24%, and sees positive EFN. Furthermore, Ms Y believes that EPS is maximized with debt issuance. Who is correct?
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Related Book For
Quantitative Corporate Finance
ISBN: 9781402070198
1st Edition
Authors: John B. Guerard, Jr.; Eli Schwartz
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