Question
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)
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