Question: 13. ABC., Inc., is currently operating at only 75 percent of Fixed asset capacity. Current sales are $850,000. How much can sales Increase before any




13. ABC., Inc., is currently operating at only 75 percent of Fixed asset capacity. Current sales are $850,000. How much can sales Increase before any new fixed assets are needed? O a. $111,176.00 O b. 741,176.00 Os $283,333.333 O d. $1,133,333.33 13. ABC., Inc., is currently operating at only 75 percent of fixed asset capacity. Current sales are $850,000. How much can sales Increase before any new fixed assets are needed? O $111,176,00 O b. 741.176.00 O $283,333,333 Od $1,133,333.33 16. A company is forecasting an increase in sales and is using the AFN model to forecast the additional capital that they need to raise. Which of the following factors are likely to increase the additional funds needed (AFN)? O a. The company has a high dividend payout ratio. O b. The company has a high profit margin. OcThe company has a lot of excess capacity Od. The company has a lot of spontaneous liabilities that increase as sales increase. 24. Sustainable growth rate, what must a firm do to grow faster a. Issue new debt b. Increase payout ration Oc increase shareholders d. Raise new preferred 11. Assuming the following ratios are constant, what is the sustainable growth rate? Total asset turnover 2.50, profit margin 7.8%, Equity multiplier 1.80, payout ratio is 60%. The retention is: O a. 45% b. 50% Oc 40% Od 30%
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