If Excelsior Inc.s expected sales growth rate is 5 percent, determine the external financing required. Will the
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A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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2012 Income Statement ($Million) Net sales Less: Cost of goods sold Less: Depreciation Earnings before interest and taxes Less: Interest paid 1,850 Taxable income 985 156 829 Addition to retained earnings 244 585 605 Less: Taxes 180 Net income 1,065 80 Dividends paid Year 1 and Year 2 December 31 Balance Sheet ($Million) Year Year 2 350 370 720 550 Year I Year 2 Cash Accounts receivable Inventory Subtotal Net fixed assets 100 330 410 840 112 Accounts payable 234 Notes payable 435 Subtotal 781 Long-term debt 400 390 790 500 1,556 1,888 Owner's equity Common shares Retained earnings Subtotal 599 800 1,1061,399 550 556 Total assets 2,396 2,669 Total liabilities and equity 2,396 2,669
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Introduction To Corporate Finance
ISBN: 9781118300763
3rd Edition
Authors: Laurence Booth, Sean Cleary
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