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The most recent financial statements for Alexander Co. are shown here: Income Statement Sales Costs Balance Sheet $50,000 Current $78,300 Long-term assets debt 32,000 Fixed
The most recent financial statements for Alexander Co. are shown here: Income Statement Sales Costs Balance Sheet $50,000 Current $78,300 Long-term assets debt 32,000 Fixed assets 43,200 Equity 67,500 Taxable $18,000 Total $121,500 Total $121,500 income Taxes (24%) Net income 4,320 $13,680 Assets and costs are proportional to sales. The company maintains a constant 24 percent dividend payout ratio and a constant debt-equity ratio What is the maximum increase in sales that can be sustained assuming no new equity is issued
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