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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 capacity. The company pays out in dividends of its net income and moves of its net income into retained earnings.
If the firm operates at capacity, at what level of sales would its fixed assets first became spontaneous?
$ $ $ $
If sales increased by what would be its new Net Income?
$ $ $ $
If sales increased by what would be its new level of Total Assets?
$ $ $ $
Based on a increase in sales compute the Additional Financing Needs for next year.
$ $ $ $
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