Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Galehouse Gas Stations Incorporated expects sales to increase from $ 1 , 5 3 0 , 0 0 0 to $ 1 , 7 3

Galehouse Gas Stations Incorporated expects sales to increase from $1,530,000 to $1,730,000 next year. Galehouse believes that net assets (Assets Liabilities) will represent 40 percent of sales. Her firm has an 10 percent return on sales and pays 55 percent of profits out as dividends.
What effect will this growth have on funds?
If the dividend payout is only 20 percent, what effect will this growth have on funds?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Personal Finance An Integrated Planning Approach

Authors: Ralph R Frasca

8th edition

136063039, 978-0136063032

More Books

Students also viewed these Finance questions

Question

What arguments are made in favor or protectionism practices?

Answered: 1 week ago

Question

1. Describe the 5 methods of acquiring knowledge

Answered: 1 week ago