New math** Assume currently Net income of AJX Group is $20,000, Dividend paid $4000, Retained earning amount in current balance sheet is $16,000. Firm follows constant dividend ratio. Next year Net Income would be 1.5 times higher than current net income. Calculate expected Dividend amount and expected total Retained earning amount in the balance sheet.

4 points

Your answer

New math** Total sales of AFM group is $ 80,000 and variable cost is $10,000, fixed cost $ 20,000 and 30% of total asset financed with 10% debt. Total asset turnover 2.5 times and common stock at $10 per share. Tax rate 30%. Calculate Interest amount and number of share common share.

4 points

Your answer

Calculate Degree of Operating Leverage of AFM Group. (Note: Result must be in TWO one decimal point, example: 2.8)