Question: plz do 4, 5 question Douglass Enterprises Income Statement for the Present Year Sales Costs Taxable Income Taxes Net Income Dividends Addition to ret. earnings


plz do 4, 5 question
Douglass Enterprises Income Statement for the Present Year Sales Costs Taxable Income Taxes Net Income Dividends Addition to ret. earnings $4,840 $4,120 $ 720 $ 245 $ 475 $ 190 $ 285 Douglass Enterprises Balance Sheet for the Present Year Cash Accounts ree Inventory Current assets Fixed assets $1.010 Accounts payable $ 302 Notes payable $361 Current liabilities $1.673 Long-term debt $5.200 Common stock Retained earnings $6.873 Total liabilities & $ 536 $7,500 $2,036 $7,200 $3,000 $ 637 $6,873 Total assets 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. (20 marks) 2) What is the Internal growth rate for the company? (20 marks) 3) What is the sustainable growth rate for the company? (20 marks) 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? (20 marks) 5) Calculate ROE through Dupont identity and describe the sources of return for the company. (20 marks)
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