The profit margin is 15% and the dividend payout is 70%. Last year sales were RO 100 million and total assets were RO 80 Million. the accounts payable represent 30% of total assets. The operating accurals are RO 2 million. The assets and costs vary directly with sales. The firm operates at full capacity. if the sales growth rate is 10% how much external financing is needed? please show all work and interpretation
The profit margin is 15% and the dividend payout is 70%. Last year sales were RO 100 million and total assets were RO 80 Million. the accounts payable represent 30% of total assets. The operating accurals are RO 2 million. The assets and costs vary directly with sales. The firm operates at full capacity. if the sales growth rate is 10% how much external financing is needed? please show all work and interpretation
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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The profit margin is 15% and the dividend payout is 70%. Last year sales were RO 100 million and total assets were RO 80 Million. the accounts payable represent 30% of total assets. The operating accurals are RO 2 million. The assets and costs vary directly with sales. The firm operates at full capacity. if the sales growth rate is 10% how much external financing is needed?
please show all work and interpretation
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