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71.
Fake Stone, Inc. is projecting sales to decrease by 4 percent next year while
the profit margin remains constant. The firm wants to increase the dividend
payout ratio by 2 percent. What is the projected increase in retained
earnings for next year?
72.
What is the internal growth rate of Fake Stone, Inc. assuming the payout
ratio remains constant?
73.
What are the pro forma retained earnings for next year if Fake Stone, Inc.
grows at a rate of 2.5 percent and both the profit margin and the dividend
payout ratio remain constant?
74.
Assume that net working capital and all of the costs of Fake Stone, Inc.
increase directly with sales. Also assume that the tax rate and the dividend
payout ratio are constant. The firm is currently operating at full capacity.
What is the external financing need if sales increase by 4 percent?
75.
Hungry Howie's is currently operating at 80 percent of capacity. What is the
full-capacity level of sales?
76.
Hungry Howie's is currently operating at 84 percent of capacity. What is the
total asset turnover ratio at full capacity?
77.
Hungry Howie's is currently operating at 96 percent of capacity. The profit
margin and the dividend payout ratio are projected to remain constant.
Sales are projected to increase by 5 percent next year. What is the
projected addition to retained earnings for next year?
78.
Hungry Howie's is currently operating at full capacity. The profit margin and
the dividend payout ratio are held constant. Net working capital and fixed
assets vary directly with sales. Sales are projected to increase by 9 percent.
What is the external financing needed?
79.
Hungry Howie's maintains a constant payout ratio. The firm is currently
operating at full capacity. What is the maximum rate at which the firm can
grow without acquiring any additional external financing?
80.
Hungry Howie's is currently operating at 96 percent of capacity. What is the
required increase in fixed assets if sales are projected to increase by 14
percent?
