Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Muscat Video Products sales are expected to stable in 2020 at the OMR (S1=S0 = 8) million as it was in 2019. Its assets totalled

Muscat Video Products sales are expected to stable in 2020 at the OMR (S1=S0 = 8) million as it was in 2019. Its assets totalled (TA) OMR 6 million at the end of 2019. Muscat company is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2019, current liabilities (TCL) were OMR (2) million. The net profit margin (NPM) is forecasted to be 4%, and the payout ratio (D) is 30%. Is muscat company needs fund from external or internal to finance the new sales in 2020? And why. (explain the answer mathematicaly)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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