During 2018, Raines Umbrella Corp. had sales of $660,000. Cost of goods sold, administrative and selling expenses,
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During 2018, Raines Umbrella Corp. had sales of $660,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $500,000, $90,000, and $85,000, respectively. In addition, the company had an interest expense of $90,000 and a tax rate of 21 percent. (Ignore any tax loss carryforward provisions and assume interest expense is fully deductible.)
Suppose the company paid out $54,000 in cash dividends. If net capital spending and net working capital was zero, and if no new stock was issued during the year, what is the net new long-term debt?
Related Book For
Corporate Finance Core Principles and Applications
ISBN: 978-0077905200
3rd edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford
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