Question
Answer 1, 2 using the XYZ Co. with the following financial information for 2019 Sales = $3M, Net Income = $0.8M, Dividend = $0.2M Current
Answer 1, 2 using the XYZ Co. with the following financial information for 2019
Sales = $3M,
Net Income = $0.8M,
Dividend = $0.2M
Current Asset = $0.5M,
Fixed Asset = $4.0M
Current Liability = $0.3M,
Long Term Debt = $1M,
Common Stock = $2.7M,
Retained Earnings = $0.6M
1. What is the sustainable growth rate?
2. If 2020 sales are projected to be $3.6M(It means 20% up), what is the amount of external financing needed, assuming XYZ is operating at full capacity, and profit margin and payout ratio remain constant?
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Corporate Finance Principles And Practice
Authors: Denzil Watson, Antony Head
5th Edition
0273725343, 978-0273725343
