Answered step by step
Verified Expert Solution
Question
1 Approved Answer
OCA Technologies has total assets of $1,240,000, long-term debt of $570,000, stockholders' equity of $300,000, and current liabilities of $370,000. The dividend payout ratio is
OCA Technologies has total assets of $1,240,000, long-term debt of $570,000, stockholders' equity of $300,000, and current liabilities of $370,000. The dividend payout ratio is 35 percent and the profit margin is 7 percent. Assume all assets and current liabilities change spontaneously with sales and the firm is currently operating at full capacity. What is the external financing need if the current sales of $1,800,000 are projected to increase by 15 percent?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started