Question
Big Kahuna maintains a plowback ratio of 45%. Sales last year were $400mm. Next year's sales are projected to increase by 20%. If the firm's
Big Kahuna maintains a plowback ratio of 45%. Sales last year were $400mm. Next year's sales are projected to increase by 20%. If the firm's net margin is 8%, what of the following is closest to the forecast change in Retained Earnings?
a)19mm
b)17mm
c)15.22mm
d)18.5mm
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Financial Markets and Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
8th edition
013342362X, 978-0133423624
