Question
The Country Faire Company wants achieve $5 million in additional sales. They believe that they can raise $300,000 in additional funding from investors and that
The Country Faire Company wants achieve $5 million in additional sales. They believe that they can raise $300,000 in additional funding from investors and that vendors will extend an additional $200,000 in credit. If the firm pays out 40% of earnings as dividends and profit margin is 10% on the additional sales, then how much can they afford to spend on assets to make this plan work?
$375,000 |
$500,000 |
$600,000 |
$675,000 |
$800,000 |
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Entrepreneurial Finance
Authors: J. Chris Leach, Ronald W. Melicher
6th edition
1305968352, 978-1337635653, 978-1305968356
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