Question
Pickup Industries has a profit margin of 15% and a dividend payout of 40%. Last years sales were $600 million and total assets were $400
Pickup Industries has a profit margin of 15% and a dividend payout of 40%. Last year’s sales were $600 million and total assets were $400 million. None of the liabilities vary directly with sales, but assets and costs do. If the sales growth rate for Pickup is 20%, how much external financing is needed?
Select one:
a. $5.2 million
b. $15.2 million
c. $26.0 million
d. $13.1 million
e. $21.3 million
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