Practice

Here are the abbreviated financial statements for Planners Peanuts Income Statement, 2015 Sales Costs Not income $3,630 2,320 $1,310 Assots 2014 $2,873 Balance Sheet, Year-End 2015 $3,941 Debt Equity $3,941 Total 2014 $893 1.980 $2 873 2015 $1,320 2,621 $3,941 Total $2,873 a. What is the maximum possible growth rate in 2016 for Planners Peanuts if the payout ratio is fixed at 53% and no external debt or equity is to be issued? (Do not round intermediate calculations. Round your answer to 1 decimal place) The maximum possible growth rate What is the maximum possible growth rate in 2016 for Planners Peanuts if the payout ratio is fixed at 53% and the firm maintains its 2015 debt-to-equity ratio but issues no equity? (Do not round intermediate calculations. Round your answer to 1 decimal place.) The maximum possible growth rate b. Calculate the required external financing for the two growth ratos. (Do not round intermediate calculations. Round your answers to 1 decimal place.) Required external financing for the first growth rate Required external financing for the second growth rate Here are the abbreviated financial statements for Planners Peanuts Income Statement, 2015 Sales Costs Not income $3,630 2,320 $1,310 Assots 2014 $2,873 Balance Sheet, Year-End 2015 $3,941 Debt Equity $3,941 Total 2014 $893 1.980 $2 873 2015 $1,320 2,621 $3,941 Total $2,873 a. What is the maximum possible growth rate in 2016 for Planners Peanuts if the payout ratio is fixed at 53% and no external debt or equity is to be issued? (Do not round intermediate calculations. Round your answer to 1 decimal place) The maximum possible growth rate What is the maximum possible growth rate in 2016 for Planners Peanuts if the payout ratio is fixed at 53% and the firm maintains its 2015 debt-to-equity ratio but issues no equity? (Do not round intermediate calculations. Round your answer to 1 decimal place.) The maximum possible growth rate b. Calculate the required external financing for the two growth ratos. (Do not round intermediate calculations. Round your answers to 1 decimal place.) Required external financing for the first growth rate Required external financing for the second growth rate