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1. The most recent financial information for Last in Line is: Sales $9,800 Costs 8,740 Net income 1,060 Assets 8,950 Debt 4,760 Equity 4,190 Assets

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1. The most recent financial information for Last in Line is: Sales $9,800 Costs 8,740 Net income 1,060 Assets 8,950 Debt 4,760 Equity 4,190 Assets and costs are proportional to sales. Debt and equity are not. A dividend of $371 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to be $10,584. What is the amount of the external financing need? 2. The most recent financial information for Ben's Co. is: Sales $19,700 Costs 15,250 Taxes 1.513 Net income 2,937 Current assets 3,018 Fixed assets 18,282 Debt 7,600 Equity 10,760 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? 3. The most recent financial statements for RPJ Co. are shown here: Sales $19,700 Costs 15.250 Taxes 1,513 Net income 2,937 Current assets 3,018 Fixed assets 18.282 Current liabilities 2.940 Long-term deht 7,600 Equity 10,760 Assets and costs are proportional to sales. The company maintains a constant 40 percent dividend payout ratio and a constant debt-equity ratio. What is the maximum increase in sales that can be sustained next year assuming no new equity is issued

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