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3. (15pt] Find below the Company's financial statements for year 2525. Current Assets PP&E Total Balance Sheet, 12/31/2525 $4,650 Debt $39.000 Stockholders Equity $43.650 Total

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3. (15pt] Find below the Company's financial statements for year 2525. Current Assets PP&E Total Balance Sheet, 12/31/2525 $4,650 Debt $39.000 Stockholders Equity $43.650 Total $16,550 $27,100 $43,650 Income, 1/1 - 12/31/2525 Sales $200,800 Total costs $195,900 Net income $4,900 Dividends $1,810 Retained Earning $3,090 For 2526 the asset turnover (= sales = total assets), net profit margin (= net income + sales), and payout ratio (= dividends = net income will be constant. The price-to- earnings ratio, 21.6 at year-end 2525, is expected to equal 28.1 at year-end 2526. The number of shares outstanding is 13,550. The firm seeks maximum growth by relying on internal and external financing such that the debt-to-equity ratio remains constant. 1. [3pt) Find the growth rate based on firm's financing decision. 2. [3pt) Compute the market price of firms' stock in year 2525. 3. [3pt) Compute the market price of firms' stock in year 2526. 4. [3pt) Compute the dividend in year 2526. 5. [3pt) For the shareholder that buys a share at year-end 2525 and holds the stock through year-end 2526, what is the rate of return

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