Assume this firm is operating at 80 percent of capacity. What is the amount of the...
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Assume this firm is operating at 80 percent of capacity. What is the amount of the full-capacity level of sales? Assume the firm has a constant dividend payout ratio and a constant debt-equity ratio. What is the maximum growth rate the firm can achieve without any external equity financing? Assume the firm has a constant dividend payout ratio and profit margin. Given these conditions, what is the maximum rate at which the firm can grow if they are currently at full capacity and do not want any external financing of any kind? Assume the firm has a constant dividend payout ratio and a projected sales increase of 12 percent. All costs, assets, and current liabilities vary directly with sales. The firm is currently at full production. What is the external financing need? Assume the profit margin is projected to increase to 9 percent while the dividend payout ratio semains constant. If sales increase by 12 percent, what is the projected total retained earnings? Assume the profit margin and dividend payout ratios are constant. What is the projected retained earnings if sales increase by 7 percent? Assume the profit margin is projected to increase to 9 percent while the dividend payout ratio remains constant. If sales increase by 12 percent, what is the projected total retained earnings? Assume the profit margin and dividend payout ratios are constant. What is the projected retained earnings if sales increase by 7 percent? Assume that costs, assets, and current liabilities all vary directly with sales. Also assume the firm is operating at full capacity and that sales are projected to increase by 9 percent. What is the projected value of earnings before interest and taxes? Assume the firm is operating at 75 percent of capacity. At full capacity sales, what is the amount of assets needed to generate $1 in sales? Assume the profit margin and dividend payout ratio are constant. By what amount will retained earnings increase if sales are projected to increase by 11 percent? Assume the firm is operating at 90 percent of capacity. By what percent does sales increase if the firm starts to operate at the full-capacity level of sales? Income Statement Net sales Less: Cost of goods sold Less: Depreciation Earnings before interest and taxes Less: Interest paid Taxable Income Less: Taxes Net income Dividends $125 $4,700 Cash 2,950 Accounts rec. 800 Inventory 950 Total $2,010 310 Net fixed assets 5,880 640 Total assets 220 $7.890 $ 420 S S 840 650 520 Balance Sheet Accounts payable Long-term debt Common stock Retained earnings Total liab. & equity $ 790 3,130 2,780 1.190 $7.890 Assume this firm is operating at 80 percent of capacity. What is the amount of the full-capacity level of sales? Assume the firm has a constant dividend payout ratio and a constant debt-equity ratio. What is the maximum growth rate the firm can achieve without any external equity financing? Assume the firm has a constant dividend payout ratio and profit margin. Given these conditions, what is the maximum rate at which the firm can grow if they are currently at full capacity and do not want any external financing of any kind? Assume the firm has a constant dividend payout ratio and a projected sales increase of 12 percent. All costs, assets, and current liabilities vary directly with sales. The firm is currently at full production. What is the external financing need? Assume the profit margin is projected to increase to 9 percent while the dividend payout ratio semains constant. If sales increase by 12 percent, what is the projected total retained earnings? Assume the profit margin and dividend payout ratios are constant. What is the projected retained earnings if sales increase by 7 percent? Assume the profit margin is projected to increase to 9 percent while the dividend payout ratio remains constant. If sales increase by 12 percent, what is the projected total retained earnings? Assume the profit margin and dividend payout ratios are constant. What is the projected retained earnings if sales increase by 7 percent? Assume that costs, assets, and current liabilities all vary directly with sales. Also assume the firm is operating at full capacity and that sales are projected to increase by 9 percent. What is the projected value of earnings before interest and taxes? Assume the firm is operating at 75 percent of capacity. At full capacity sales, what is the amount of assets needed to generate $1 in sales? Assume the profit margin and dividend payout ratio are constant. By what amount will retained earnings increase if sales are projected to increase by 11 percent? Assume the firm is operating at 90 percent of capacity. By what percent does sales increase if the firm starts to operate at the full-capacity level of sales? Income Statement Net sales Less: Cost of goods sold Less: Depreciation Earnings before interest and taxes Less: Interest paid Taxable Income Less: Taxes Net income Dividends $125 $4,700 Cash 2,950 Accounts rec. 800 Inventory 950 Total $2,010 310 Net fixed assets 5,880 640 Total assets 220 $7.890 $ 420 S S 840 650 520 Balance Sheet Accounts payable Long-term debt Common stock Retained earnings Total liab. & equity $ 790 3,130 2,780 1.190 $7.890
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