1) The sales of the company are expected to increase by 14% next year. The firm is...
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1) The sales of the company are expected to increase by 14% next year. The firm is currently producing at full capacity. The company wishes to maintain a constant debt-equity ratio and a constant dividend payout ratio. Calculate the external financing amount for the company.
2) What is the Internal growth rate for the company?
3) What is the sustainable growth rate for the company?
4) How do you compare the two growth rates of the company? Which one of the two is likely to help the company more in initiating capital investment projects in the future?
5) Calculate ROE through Dupont identity and describe the sources of return for the company.
Related Book For
Principles of Accounting
ISBN: 978-1133626985
12th edition
Authors: Belverd E. Needles, Marian Powers and Susan V. Crosson
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