Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Assume the company is operating at 8 5 % capacity. The company pays out in dividends 6 0 % of its net income and moves

Assume the company is operating at 85%capacity. The company pays out in dividends 60% of its net income and moves 40% of its net income into retained earnings.
If the firm operates at 85% capacity, at what level of sales would its fixed assets first became spontaneous?
[ $959,851, $942,685, $933,800, $955,294]
If sales increased by 20% what would be its new Net Income?
[ $77,580, $81,500, $71,872, $88,293]
If sales increased by 20% what would be its new level of Total Assets?
[ $580,000, $620,700, $626,348, $576,400]
Based on a 20% increase in sales compute the Additional Financing Needs for next year.
[ $11,450, $48,114, $2,178, $1,912]
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions

Question

- - S72SJ. ZOZO coo coo 2 12250

Answered: 1 week ago