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The most recent financial statements for Hailey Co. are shown here: Income Statement Balance Sheet Sales $ 62,400 Current assets $ 29,400 Long-term debt $
The most recent financial statements for Hailey Co. are shown here: |
Income Statement | Balance Sheet | ||||||||||
Sales | $ | 62,400 | Current assets | $ | 29,400 | Long-term debt | $ | 63,800 | |||
Costs | 25,200 | Fixed assets | 124,000 | Equity | 89,600 | ||||||
Taxable income | $ | 37,200 | Total | $ | 153,400 | Total | $ | 153,400 | |||
Taxes (23%) | 8,556 | ||||||||||
Net income | $ | 28,644 | |||||||||
Assets and costs are proportional to sales. The company maintains a constant 40 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? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
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