The Country Faire Company wants achieve $5 million in additional sales. They believe that they can raise
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Question:
The Country Faire Company wants achieve $5 million in additional sales. They believe that they can raise $300,000 in additional funding from investors and that vendors will extend an additional $200,000 in credit. If the firm pays out 40% of earnings as dividends and profit margin is 10% on the additional sales, then how much can they afford to spend on assets to make this plan work?
$375,000 |
$500,000 |
$600,000 |
$675,000 |
$800,000 |
Related Book For
Entrepreneurial Finance
ISBN: 978-1305968356
6th edition
Authors: J. Chris Leach, Ronald W. Melicher
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