The most recent financial statements for WFY, Co., are shown here: Income Statemont Salos Balance Sheet...
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The most recent financial statements for WFY, Co., are shown here: Income Statemont Salos Balance Sheet € 35 250,00 € 24 675,00 € 10 575,00 Curront assots €10 400 Debt €17 500 Costs Fixed assots €28 750 Equity €21 650 Taxablo incomo Total €39 150 Total €39 150 Taxes (35%) €3 701,25 Not income €4 582,50 Assots and costs are proportional to salos. Debt and equity are not. The company pays a payout ratio of 50%, and the company wishos to maintain a constant payout ratio. The foracast for next yoar's salos is €38000. a) What is the external financing needed? (1,5 points) b) Calculate the intornal growth rate. How do you intorpret it? (1,5 points) The most recent financial statements for WFY, Co., are shown here: Income Statemont Salos Balance Sheet € 35 250,00 € 24 675,00 € 10 575,00 Curront assots €10 400 Debt €17 500 Costs Fixed assots €28 750 Equity €21 650 Taxablo incomo Total €39 150 Total €39 150 Taxes (35%) €3 701,25 Not income €4 582,50 Assots and costs are proportional to salos. Debt and equity are not. The company pays a payout ratio of 50%, and the company wishos to maintain a constant payout ratio. The foracast for next yoar's salos is €38000. a) What is the external financing needed? (1,5 points) b) Calculate the intornal growth rate. How do you intorpret it? (1,5 points)
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22 INCOME STATEMENT Last Year PROJECTED Amount Perce... View the full answer
Related Book For
Corporate Finance Core Principles and Applications
ISBN: 978-0077905200
3rd edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford
Posted Date:
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