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The most recent financial statements for Alexander Co. are shown here: Balance Sheet Income Statement Sales $50,000 Current assets Long-term $78,300 $54,000 Costs 32,000
The most recent financial statements for Alexander Co. are shown here: Balance Sheet Income Statement Sales $50,000 Current assets Long-term $78,300 $54,000 Costs 32,000 Fixed assets debt 43,200 Equity 67,500 Taxable $18,000 Total $121,500 Total $121,500 income Taxes (22%) 3,960 Net income $14,040 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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