Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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The most recent financial statements for Mixton, Incorporated, are shown here:
Income Statement Balance Sheet
$ 40,000
27,200
$ 12,800
2,816
$ 9,984
Sales
Costs
Taxable income
Taxes (22%)
Net income
Assets $ 147,000 Debt $43,000
Equity 104,000
Total $ 147,000 Total $147,000
Assets and costs are proportional to sales; debt and equity are not. A dividend of $3,400 was paid, and the company wishes to maintain a constant payout
ratio. Next year's sales are projected to be $46,400.
What is the external financing needed?
(Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
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Transcribed Image Text:The most recent financial statements for Mixton, Incorporated, are shown here: Income Statement Balance Sheet $ 40,000 27,200 $ 12,800 2,816 $ 9,984 Sales Costs Taxable income Taxes (22%) Net income Assets $ 147,000 Debt $43,000 Equity 104,000 Total $ 147,000 Total $147,000 Assets and costs are proportional to sales; debt and equity are not. A dividend of $3,400 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to be $46,400. What is the external financing needed? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
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