Question: Pendleton's management estimates that under the most optimistic circumstances it might experience a 25% rate of growth of sales in 2017. Assuming that net

Pendleton's management estimates that under the most optimistic circumstances it might experience

Pendleton's management estimates that under the most optimistic circumstances it might experience a 25% rate of growth of sales in 2017. Assuming that net income is 5% of firm sales and that the DRP is 30%, what do you estimate the firm's DFN to be under these optimistic circumstances?

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