Question
A firm has the following details: ROE = 10% Expected ROE to remain the same Payout Ratio = 40% Equity/Assets = .30 Predicted sales growth
A firm has the following details:
ROE = 10%
Expected ROE to remain the same
Payout Ratio = 40%
Equity/Assets = .30
Predicted sales growth of 10% for next year
Total Liabilities = $2,000,000
Assume assets need to grow at the same rate as sales What are the company's (predicted) external financing needs for the next year? Assume the firm is following an internal growth approach.
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The Essential Credit Repair Handbook
Authors: Deborah McNaughton
1st Edition
160163160X, 978-1601631602
