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( Use the following information for the next 5 questions. ) Good Times Inc. has current sales of $ 7 , 5 0 0 (

(Use the following information for the next 5 questions.)
Good Times Inc. has current sales of $7,500(in millions), an operating ratio of 6%, a capital requirement ratio of 45%, a tax rate of 40% and a corporate cost of capital of 8%. Under new management sales are expected to grow 15% in Yr 1,15% in Yr 2,10% in Yr 3,5% in Yr 4 and then grow at a constant rate of 4% after Yr 4.
In addition, the firm has the following balance sheet items:
(000,000)
Short-term investments = $25
Short-term debt (notes payable)= $250
Long-term debt (bonds)= $300
Preferred stock = $30
Number of shares of common stock =75

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