Question

The Optical Scan Company has forecast a 20 percent sales growth rate for next year. The current financial statements are shown here:
a. Using the equation from the chapter, calculate the EFN for next year.
b. Construct the firm’s pro forma statement of financial position for next year and confirm the EFN that you calculated in (a).
c. Calculate the sustainable growth rate for the company.
d. Can Optical Scan eliminate the need for external funds by changing its dividend policy? What other options are available to the company to meet its growth objectives?


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  • CreatedJune 17, 2015
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