Question
Consider the following information for the percentage of sales approach: Sales = $3M, NI = $0.4M, Div = $0.1M Total Asset = $4M Current Liability
Consider the following information for the percentage of sales approach: Sales = $3M, NI = $0.4M, Div = $0.1M Total Asset = $4M Current Liability $0.2M Long-term debt = $1M Equity = $2.8M
If sales increase by 10% (and NI, assets, and CL increase at the same rate), the external financing needed is $M:
Group of answer choices 0.26 0.33 0.19 0.12 0.05
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Options Futures And Other Derivatives
Authors: John C. Hull
4th Edition
0130224448, 9780130224446
