CHAPTER REVIEW AND SELF-TEST PROBLEMS 4.1 Calculating EFN Based on the following information for the Skandia Mining Company, what is EFN if sales are predicted to grow by 10 percent? Use the percentage of sales approach and assume the company is operating at full capacity. The payout ratio is constant. SKANDIA MINING COMPANY Financial Statements Income Statement Balance Sheet Assets Liabilities and Owners' Equity Sales $4,250.0 Current assets $ 900.0 Current liabilities $ 500.0 Costs 3,9367 Net fixed assets 2,200.0 Long-term debt 1.800.0 Taxable income $313.3 Total assets Owners' equity 800.0 Taxes (21%) 65.8 Total liabilities and owners Net Income $ 2475 $3,100,0 equity $3100.0 Dividends $ 82,6 Addition to retained earnings 164.9 4.2 EFN and Capacity Use Based on the information in Problem 4.1. what is EFN, assuming 60 percent capacity usage for net fixed assets? Assuming 95 percent capacity? 4.3 Sustainable Growth Based on the information in Problemi 4.1. what growth rate can Skandia maintain if no external financing is used? What is the sustainable growth rate