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Assignment 4-2. A company's shareholders would like to receive next year DPS of 0.50 EUR. It is known that the company maintains D/E ratio of
Assignment 4-2. A company's shareholders would like to receive next year DPS of 0.50 EUR. It is known that the company maintains D/E ratio of 1.5, gross margin of 35%, and payout ratio of 40%; these ratios are expected to remain constant in the future. The company's total assets currently equal 18.6MEUR, total fixed costs are 9.1 MEUR. The firm pays 6.0% on its debt annually. Corporate income tax rate is 20%. There are 2 million shares of stock in circulation. - Which sales revenue will assure desired amount of DPS
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