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Use the following information to answer questions #6 through #8. Douglass Enterprises Income Statement for the Present Year Douglass Enterprises Balance Sheet for the Present

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Use the following information to answer questions #6 through #8. Douglass Enterprises Income Statement for the Present Year Douglass Enterprises Balance Sheet for the Present Year Assets, accounts payable and costs arc proportional to sales. Debt and equity are not. What is the sustainable rate of growth for Douglass Enterprises? a. 7.84% b. 8.50% c. 8.69% d. 9.22% e. 15.02% The sales of Douglass Enterprises are expected to increase by 14% next year. The dividend payout ratio is to be held constant. What is the addition to retained earnings? a. $311 b. $325 c. $437 d. $475 e. $518 The sales of Douglass Enterprises are expected to increase by 14% next year. The firm is currently producing at full capacity. Management wants to maintain a constant dividend payout ratio. What is the external financing needed? a. -$325 b. -$238 c. $542 d. $562 e. $962

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