Lamella labs, inc.'s sales are $70,000, all operating costs (including depreciation and interest) are $49,000. total assets are $100,000. Total debt is $30,000. And equity is $70,000. Assets and costs are proportional to sales. The corporate tax rate is 25 percent. if the firm maintains a 30 percent dividend payout ratio and sales were grow 10 percent, how much would equity be on the pro forma balance sheet?

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To calculate the pro forma equity on the balance sheet after a 10 percent increase in sales ... View the full answer