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QUESTION 5 A firm has: a 6% profit margin a 40% total liabilities / assets ratio a capital intensity ratio of 2 a dividend payout
QUESTION 5 A firm has: a 6% profit margin a 40% total liabilities / assets ratio a capital intensity ratio of 2 a dividend payout ratio of 4095 current sales (50) of $10 million Using the AFN equation, what is the amount of additional funds needed if the firm expects a 5% increase in sales next year? $348,000 $422,000 $279,000 $222,000 Suppose the firm from Question 5 above determines that Fixed Assets are running at only 94% capacity, while current assets are at 100%. How much additional financing would the firm need in order to support the 5% growth in sales? $32,000 $0 $83,000 O $104,000
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