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Next 3 Qs Use the following information Stone Roses Co . Balance Sheet for Dec. 3 1 , 1 9 9 9 Cash $ 5
Next Qs Use the following information
Stone Roses Co
Balance Sheet for Dec.
Cash
$
Accounts payable
$
Inventory
$
Notes payable
Fixed assets
$
Longterm debt
Equity
Total assets
$
Total liabilities & equity
$
Income statement for
Sales
$
Costs
EBT
$
Taxes
Net income
$
Suppose the firm retains of earnings, while assets and costs
maintain a constant percentage of sales. If the firm is producing at full
capacity, what is the internal growth rate?
Question
Point
Suppose that assets and costs maintain a constant ratio to sales. The maintain a constant percentage of sales. The firm retains of earnings. If the firm is producing at full what is the maximum growth rate, assuming no equity sales, that will maintain a constant debtequity ratio?
Question
Point
Suppose the firm wishes to maintain a constant debtequity ratio, retains of net income, and raises no new equity. Assets and costs maintain a constant ratio to sales. What is the maximum increase in sales the firm can achieve?
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Assessment due date
: PM EDT
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Maximum points
points
Last saved :: AM
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