57.

Use the below information to answer the following question.

Income Statement
For the Year
Sales	$28,400
Cost of goods sold	21,200
Depreciation	2,700
Earnings before interest and taxes	$ 4,500
Interest paid	850
Taxable income	$ 3,650
Taxes	1,400
Net income	$ 2,250
Dividends $900

Balance Sheet
End-of-Year
Cash	$ 550
Accounts receivable	2,450
Inventory	4,700
Total current assets	$ 7,700
Net fixed assets	16,900
Total assets	$24,600
Accounts payable	$ 2,700
Long-term debt	9,800
Common stock ($1 par value)	8,000
Retained earnings	4,100
Total Liab. & Equity	$24,600

The firm does not want to incur any additional external financing. The dividend payout ratio is constant. What is the firm's maximum rate of growth?

A.	5.81 percent
B.	6.18 percent
C.	5.49 percent
D.	6.03 percent
E.	5.97 percent

This firm is currently operating at maximum capacity. All costs, assets, and current liabilities vary directly with sales. The tax rate and the dividend payout ratio will remain constant. How much additional debt is required if no new equity is raised and sales are projected to increase by 5 percent?

A.

$323

B.

$467

C.

$0

D.

This firm is currently operating at 84 percent of capacity. All costs and net working capital vary directly with sales. The tax rate, the profit margin, and the dividend payout ratio will remain constant. How much additional debt is required if no new equity is raised and sales are projected to increase by 12 percent?

A.	$810
B.	$912
C.	$642
D.		$264
E.	$358

$108

show the explanation to the questions please.