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Daisy's Bulbs would like to increase sales next year by 10.5%. Daisy would like to see if this is possible using internal financing only. Sales
Daisy's Bulbs would like to increase sales next year by 10.5%. Daisy would like to see if this is possible using internal financing only. Sales growth % 10.5% $ Sales Profit Margin (PM) Dividend payout ratio Capital Intensity Ratio (CIR) TD ratio 245,000 12.2% 0.55 0.50 0.27 1) What will forecasted sales be at this 10.5% growth rate? New sales = 2) What is the maximum internal growth rate (IGR) that Daisy can support? IGR= 3) Is Daisy able to increase its sales by the projected sales growth of 10.5% using internal financing only
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