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Referring to the Dynashers case please answer the following questions: a) What is dynashers ROE for 1990 ? Please decompose ROE according to the Dupont
Referring to the Dynashers case please answer the following questions: a) What is dynashers ROE for 1990 ? Please decompose ROE according to the Dupont equation (10%) B)Find the amount of external financing needed to sustain a 20% increase in sales for 1991 (20%) assume that 1) Dynashers will keep cash at 5% of projected sales. 2) A/P are paid within 30 days 3) divideds are paid at the rate of 25% of after tax earning4) long term debt is due in 2000 ( ballion payment) with 5% intrest due annually 5) COGS are deemed variable and SG&A food coasts 6) disregard intrest expenses c) Indentify the two acounts either on the B/S or I/S which should change most should
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