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The most recent financial statements for Vectron Corporation are shown below. Assets and costs are proportional to sales. The company maintains a constant 40 percent
The most recent financial statements for Vectron Corporation are shown below. 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? Income Statement Sales 80,000 Costs 50,000 Taxable income 30,000 Taxes (34%) 10,200 Net Income 19,800 Current assets Fixed assets Total 10.78% Balance Sheet 30,000 Long term debet 150,000 Equity 180.000 Total 62.000 118,000 180.000 12.33% 11.19% 11.82% 10.24%
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