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Brandy Jordan Company 2012 $1,800,000 $2,400,000 10 Sales 11 Net Income 12 Dividends Paid 13 14 Current Assets 15 Fixed Assets 16 Total Assets 17

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Brandy Jordan Company 2012 $1,800,000 $2,400,000 10 Sales 11 Net Income 12 Dividends Paid 13 14 Current Assets 15 Fixed Assets 16 Total Assets 17 C.L 18 Long Term Debt 19 Total Debt 20 Common Stock 21 Retained Earnings 22 Total Liabilities&O.E 23 24 a). What are its internal growth rate and sustainable growth rate? 25 26 Sales growth 27 Dividend Payout Ratio 28 Plowback Ratio 29 ROA 30 ROE 31 Internal Growth Rate 32 Sustainable Growth Rate S300,000 S100,000 S400,000 $3,200,000 $3,600,000 S200,000 S600,000 S800,000 $2,000,000 S800,000 Brandy Jordan Company has the financial information for 2011 as given in the table below. Its 2012 sales are projected to be $2.4M a). What are its internal growth rate and sustainable growth rate? b). If the company is operating at full capacity, and its capital structure, profit margin and payout ratio remain constant, how much of external funding it needs? 3,600,000.00 Score Maximum Score 34 b). If the company is opcrating at full capacity, and its capital structure, profit margin and payout ratio remain constant, how much of external funding it necds? 35 36 Assets Turnover 37 Total new investment 38 Internally generated funds available 39 External funds used 40 41 Assuming same capital structure 42 Equity raised 43 Long Term Debt Raised 44 Short Term Liability Increased 45 46 Long-Term Dcbt Equity re Maximum Score

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