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the most recent financial statements for anderson company: income statement sales $8700 costs 5600 taxable income $3100 Taxes (25%) 775 Net Income $2325 Balance Sheet
the most recent financial statements for anderson company: income statement sales $8700 costs 5600 taxable income $3100 Taxes (25%) 775 Net Income $2325 Balance Sheet Current Assets $4200 Fixed Assets 10,400 Total $ 14,600 Long term debt $4,300 Equity 10,300 Total $14,600 Assets and costs are proportional to sales. Long term debt and equity are not. The company maintains a constant 40 % 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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