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The recent financial statements are below Income statement Balance sheet Sales 3,100.00 CA 4,000.00 CL Costs 2,600.00 FA 3,000.00 LTD Taxable income 500 Equity Taxes
| The recent financial statements are below | |||||
| Income statement | Balance sheet | ||||
| Sales | 3,100.00 | CA | 4,000.00 | CL | |
| Costs | 2,600.00 | FA | 3,000.00 | LTD | |
| Taxable income | 500 | Equity | |||
| Taxes (34%) | 170 | Total | 7,000.00 | Total | |
| Net income | 330 | ||||
| Dividends | |||||
| Add. to RE | |||||
| Assets, costs and current liabilities are proportional to sales,. Long-term debt and equity are not. | |||||
| The company maintains a constant 50% dividend payout ratio. The sales are projected to grow | |||||
| by 16% next year. | |||||
| What are projected dividends? What external financing is needed? |
Please answer both questions!
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Financial Management Principles And Practice
Authors: Timothy Gallagher
6th Edition
1930789157, 978-1930789159
