# Question: For the company in the previous problem suppose fixed assets

For the company in the previous problem, suppose fixed assets are $490,000 and sales are projected to grow to $730,000. How much in new fixed assets are required to support this growth in sales? Assume the company maintains its current operating capacity.

## Relevant Questions

Abacus Co. wishes to maintain a growth rate of 13 percent per year, a debt-equity ratio of 1.20, and a dividend payout ratio of 30 percent. The ratio of total assets to sales is constant at .95. What profit margin must the ...The most recent financial statements for Fleury, Inc., follow. Sales for 2012 are projected to grow by 20 percent. Interest expense will remain constant; the tax rate and the dividend payout rate will also remain constant. ...Suppose the Japanese yen exchange rate is ¥80 = $1, and the British pound exchange rate is £1 = $1.58.a. What is the cross-rate in terms of yen per pound?b. Suppose the cross-rate is ¥129 = £1. Is there an arbitrage ...An investment project provides cash inflows of $585 per year for eight years. What is the project payback period if the initial cost is $1,700? What if the initial cost is $3,300? What if it is $4,900?Consider the following two mutually exclusive projects:Sketch the NPV profiles for X and Y over a range of discount rates from zero to 25 percent. What is the crossover rate for these twoprojects?Post your question