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$48.600 60,750 Income Statement Balance Sheet Current Sales Long term $45,000 $70,470 assets debt Costs 28,800 Fixed assets 38,880 Equity Taxable $16,200 Total $109,350 income
$48.600 60,750 Income Statement Balance Sheet Current Sales Long term $45,000 $70,470 assets debt Costs 28,800 Fixed assets 38,880 Equity Taxable $16,200 Total $109,350 income Taxes (23%) 3,726 Net income $12,474 Total $109,350 Assets and costs are proportional to sales. The company maintains a constant 28 percent dividend payout ratio and a constant debt equity ratio. What is the maximum increase in sales that can be sustained assuming no new equity is issued? Multiple Choice
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