Universal Products Co. has almost finished its pro forma financial statements for 2022, as shown next. a.
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Universal Products Co. has almost finished its pro forma financial statements for 2022, as shown next.
a. Assume that Universal plans to purchase $500,000 in fixed assets during 2022 and to dispose of no fixed assets during 2022. What would be its forecast for net fixed assets in 2022?
b. Assume that Universal plans to have a dividend payout ratio of 50 percent in 2022 and will neither sell nor repurchase equity during 2022. What would be its forecast for owners’ equity in 2022?
c. Given the assumptions in questions (a) and (b), what is Universal’s projected external funding required for 2022?
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Related Book For
ISE Analysis For Financial Management
ISBN: 9781265042639
13th International Edition
Authors: Robert C. Higgins Professor, Jennifer Koski
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