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Please help if you can.... TIA Maple Leaf Entertainment had sales of $350 million last year. The business has a steady net profit margin of
Please help if you can.... TIA
Maple Leaf Entertainment had sales of $350 million last year. The business has a steady net profit margin of 20 percent and a dividend payout ratio of 35 percent. The balance sheet for the end of last year is shown below: Maple Leaf anticipates a large increase in the demand for athletic attire. A sales increase of 20 percent is forecast. All balance sheet items are expected to maintain the same percent-of-sales relationships as last year, except for common stock and retained earnings. No change in the number of common shares outstanding is scheduled, and retained earnings will change as dictated by the profits and dividend policy of the firm. a. Will external financing be required for the Maple Leaf Entertainment during the coming year? (show all calculations to support your answer) Yes No b. What would the need for external financing be if the net profit margin went up to 25 percent and the dividend payout ratio was increased to 70 percent? (Enter the answer in millions. Round the final answer to 2 decimal places.)Step by Step Solution
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