The most recent financial statements for Cardinal, Inc., are shown here: Income Statement Balance Sheet Sales $
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Question:
The most recent financial statements for Cardinal, Inc., are shown here: |
Income Statement | Balance Sheet | ||||||||||
Sales | $ | 31,400 | Assets | $ | 74,000 | Debt | $ | 37,400 | |||
Costs | 18,450 | Equity | 36,600 | ||||||||
Taxable income | $ | 12,950 | Total | $ | 74,000 | Total | $ | 74,000 | |||
Taxes (24%) | 3,108 | ||||||||||
Net income | $ | 9,842 | |||||||||
Assets and costs are proportional to sales. Debt and equity are not. A dividend of $3,800 was paid, and the company wishes to maintain a constant payout ratio. Next year’s sales are projected to be $36,424. |
What is the external financing needed? |
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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