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

For the company in the previous problem, suppose fixed assets are $645,000 and sales are projected to grow to $850,000. How much in new fixed assets is required to support this growth in sales? Assume the company operates at full capacity.

## Relevant Questions

The most recent financial statements for Retro Machine, Inc., follow. Sales for 2010 are projected to grow by 20 percent. Interest expense will remain constant; the tax rate and the dividend payout rate will also remain ...Dahlia, Inc., wishes to maintain a growth rate of 9 percent per year and a debt-equity ratio of 0.55. Profit margin is 6.2 percent, and the ratio of total assets to sales is constant at 1.90. Is this growth rate possible? To ...Assuming the following ratios are constant, what is the sustainable growth rate? Total asset turnover = 2.50 Profit margin = 6.5% Equity multiplier = 1.10 Payout ratio = 60% Compute the future value of $2,500 compounded annually for a. 10 years at 6 percent b. 10 years at 8 percent c. 20 years at 6 percent d. Why is the interest earned in part (c) not twice the amount earned in part (a)? Solve for the unknown interest rate in each of the following:Post your question