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The most recent financial statements for Rely, Inc., are shown here: Income Statement: Sales $ 2 8 , 6 0 0 , Costs $ 2

The most recent financial statements for Rely, Inc., are shown here: Income Statement: Sales $28,600, Costs $20,600, Taxes (40%), Net Income $4,800. Balance Sheet: Asset $ 61,100, Total Asset $61,100, Debit $25,700 Equity $35,400, Total $61,100. Assets and costs are proportional to sales. Debts and equity are not. A dividend of $2,100 was paid, and the company wishes to maintain a constant payout ratio. Next years sales are projected to be $34,320. What is the external financing needed? a. Sale gtowth=, b. Assuming costs and assets increase proportionslly, the pro forma financial statement will look like this: Proforma Income Statement: Sales $...., Costs ...., EBIT $...., Taxes (40%)...., Net Income $...., Pro forma balance sheet: Asset $...., Debt$...., Equity...., Toal Assets $...., Net income $....c. Assume constant payout ratio dividend= d. Addition to ratsined earnings= e. New equity bance =, f. EFN =

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