Question: The most recent financial statements for Mc Govney Co. are shown here: Income Statement Sales $45,365 Costs $35,249 Taxable income ? Taxes (34%) ? Net
The most recent financial statements for Mc Govney Co. are shown here: Income Statement Sales $45,365 Costs $35,249 Taxable income ? Taxes (34%) ? Net Income ? Current Asset Fixed Asset Balance Sheet $22,192 Long-term Debt $85,286 Equity $49,975 ? Assets and costs are proportional to sales. The company maintains a constant 17 percent dividend payout ratio and a constant debt-equity ratio. What is the maximum increase in sales (in $) that can be sustained assuming no new equity is issued
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