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percent and a dividend payout ratio of 25 percent. The baiance sheet for the end of last year is shown. The firm's marketing staff has

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percent and a dividend payout ratio of 25 percent. The baiance sheet for the end of last year is shown. The firm's marketing staff has told the president that in the coming year there wilt be a large increase in the demand for avercoats and wool sincks. A soles increase of 20 percent is forecast for the company. All balance sheet items are expected to maintain the some pereent-of-salos relationships as last yeat, except for common stock and retained earnings. No change is scheduled in the number of common stock shares outstanding, And retained eamings will change as dictated by the profits and dividend policy of the firm. (Remember, the net profit margin is 6 percent) This includes fixed assets, since the firm is at fult capocity. a. Wal external financing be required for the company during the coming year? Yes No b. What would be the need for extemal financing if the net profit margin went up to 7.50 percent and the dividend payout ratio was increased to so percent? Note: Negatlve amount should be indicated by a minus sign. Do net reund intermediate cascilations. Enter your anewer in dollers, not millions, (e.9- 31,234,567. Input your answer as positive a value. percent and a dividend payout ratio of 25 percent. The baiance sheet for the end of last year is shown. The firm's marketing staff has told the president that in the coming year there wilt be a large increase in the demand for avercoats and wool sincks. A soles increase of 20 percent is forecast for the company. All balance sheet items are expected to maintain the some pereent-of-salos relationships as last yeat, except for common stock and retained earnings. No change is scheduled in the number of common stock shares outstanding, And retained eamings will change as dictated by the profits and dividend policy of the firm. (Remember, the net profit margin is 6 percent) This includes fixed assets, since the firm is at fult capocity. a. Wal external financing be required for the company during the coming year? Yes No b. What would be the need for extemal financing if the net profit margin went up to 7.50 percent and the dividend payout ratio was increased to so percent? Note: Negatlve amount should be indicated by a minus sign. Do net reund intermediate cascilations. Enter your anewer in dollers, not millions, (e.9- 31,234,567. Input your answer as positive a value

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