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The most recent financial statements for Alexander Co. are shown here: $54,000 67,500 Income Statement Balance Sheet Current Long-term Sales $50,000 $78,300 assets debt Costs
The most recent financial statements for Alexander Co. are shown here: $54,000 67,500 Income Statement Balance Sheet Current Long-term Sales $50,000 $78,300 assets debt Costs 32,000 Fixed assets 43,200 Equity Taxable $18,000 Total $121,500 Total income Taxes (23%) 4,140 Net income $13,860 $121,500 Assets and costs are proportional to sales. The company maintains a constant 36 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? Multiple Choice $3,937.86 $3,991.02 $7,564.78 $7,464.78 $7,664.78
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