MC Qu. 45Wagner Industrial Motors, which is currently operating at full ... Wagner Industrial Motors, which is currently operating at full capacity, has sales of $2,310, current assets of $650, current liabilities of $325, net fixed assets of $1,520, and a 5 percent profit margin. The firm has no long-term debt and does not plan on acquiring any. The firm does not pay any dividends. Sales are expected to increase by 10 percent next year. If all assets, short-term liabilities, and costs vary directly with sales, how much additional equity financing is required for next year? $242.55 $172.95 $231.00 $57.45 $11.55 MC Qu. 46The Cookie Shoppe expects sales of $s ... The Cookie Shoppe expects sales of $1,900 next year. The profit margin is 5 percent and the firm has a 45 percent dividend payout ratio. What is the projected increase in retained earnings? $23.51 $95.00 $71.49 $52.25 $42.75 MC Qu. 52Stop and Go has a $pm percent profit margin and a $dpop perce... Stop and Go has a 6.0 percent profit margin and a 41 percent dividend payout ratio. The total asset turnover is 1.50 and the debt-equity ratio is .50. What is the sustainable rate of growth? 6.78 percent 7.01 percent 8.65 percent 7.97 percent 7.33 percent MC Qu. 57The Two Sisters has a $roa percent return on assets and a $dpop per... The Two Sisters has a 11 percent return on assets and a 30 percent retention ratio. What is the internal growth rate? 3.41 percent 7.11 percent 8.48 percent 7.70 percent 11.64 percent MC Qu. 60 Major Manuscripts, Inc. does not want to incur any additional ... Major Manuscripts, Inc. 2009 Income Statement Net sales $7,700 Cost of goods sold 6,765 Depreciation 190 Earnings before interest and taxes $ 745 Interest paid 21 Taxable Income $ 724 Taxes 252 Net income $ 472 Dividends $ 212 Major Manuscripts, Inc. 2009 Balance Sheet 2009 2009 Cash $2,200 Accounts payable $1,600 Accounts rec. 860 Long-term debt 280 Inventory 2,600 Common stock $2,400 Total $5,660 Retained earnings 4,390 Net fixed assets 3,010 Total assets $8,670 Total liabilities & equity $8,670 Major Manuscripts, Inc. does not want to incur any additional external financing. The dividend payout ratio is constant. What is the firm's maximum rate of growth? 11.11 percent 2.51 percent 3.08 percent 3.97 percent 3.11 percent MC Qu. 61 If Major Manuscripts, Inc. decides to maintain a constant ... Major Manuscripts, Inc. 2009 Income Statement Net sales $7,600 Cost of goods sold 6,615 Depreciation 200 Earnings before interest and taxes $ 785 Interest paid 22 Taxable Income $ 762 Taxes 266 Net income $ 497 Dividends $ 223 Major Manuscripts, Inc. 2009 Balance Sheet 2009 2009 Cash $2,200 Accounts payable $1,650 Accounts rec. 840 Long-term debt 300 Inventory 2,200 Common stock $2,600 Total $5,240 Retained earnings 3,870 Net fixed assets 3,180 Total assets $8,420 Total liabilities & equity $8,420 If Major Manuscripts, Inc. decides to maintain a constant debt-equity ratio, what rate of growth can it maintain assuming that no additional external equity financing is available. 4.19 percent 4.02 percent 4.41 percent 4.52 percent 4.43 percent MC Qu. 78Hungry Howie's is currently operating at... Hungry Howie's 2009 Income Statement Net sales $ 4,800 Cost of goods sold 3,265 Depreciation 750 Earnings before interest and taxes $ 785 Interest paid 130 Taxable Income $ 655 Taxes 229 Net income $ 426 Dividends $ 50 Addition to retained earnings $ 376 Hungry Howie's 2009 Balance Sheet 2009 2009 Cash $ 40 Accounts payable $ 1,080 Accounts rec. 390 Long-term debt 1,740 Inventory 880 Common stock $ 2,100 Total $ 1,310 Retained earnings 3,190 Net fixed assets 6,800 Total assets $ 8,110 Total liabilities & equity $ 8,110 Hungry Howie's is currently operating at full capacity. The profit margin and the dividend payout ratio are held constant. Net working capital and fixed assets vary directly with sales. Sales are projected to increase by 5 percent. What is the external financing need? $-52.35 $-40.69 $-43.04 $-36.49 $-35.56 P4-3 Calculating EFN [LO2] The most recent financial statements for Zoso, Inc., are shown here (assuming no income taxes): Income Statement Balance Sheet Sales $4,400 Assets $14,900 Debt $10,600 Costs 3,390 Equity 4,300 Net income $1,010 Total $14,900 Total $14,900 ________________________________________ Assets and costs are proportional to sales. Debt and equity are not. No dividends are paid. Next year's sales are projected to be $5,972. Required: What is the external financing needed? (Do not round your intermediate calculations.) $4,232.51 $3,702.51 $3,952.51 $4,077.51 $3,822.51