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81.
The most recent financial statements for Watchtower, Inc. are shown here
(assuming no income taxes):
Assets and costs are proportional to sales. Debt and equity are not. No
dividends are paid. Next year's sales are projected to be $4,750. What is the
amount of the external financing needed?
82.
The most recent financial statements for Last in Line, Inc. are shown here:
Assets and costs are proportional to sales. Debt and equity are not. A
dividend of $992 was paid, and the company wishes to maintain a constant
payout ratio. Next year's sales are projected to be $21,830. What is the
amount of the external financing need?
83.
The most recent financial statements for 7 Seas, Inc. are shown here:
Assets, costs, and current liabilities are proportional to sales. Long-term
debt and equity are not. The company maintains a constant 50 percent
dividend payout ratio. Like every other firm in its industry, next year's sales
are projected to increase by exactly 16 percent. What is the external
financing need?
84.
The most recent financial statements for Benatar Co. are shown here:
Assets and costs are proportional to sales. Debt and equity are not. The
company maintains a constant 40 percent dividend payout ratio. No external
equity financing is possible. What is the internal growth rate?
85.
The most recent financial statements for Heng Co. are shown here:
Assets and costs are proportional to sales. The company maintains a
constant 45 percent dividend payout ratio and a constant debt-equity ratio.
What is the maximum increase in sales that can be sustained next year
assuming no new equity is issued?
86.
Consider the income statement for Heir Jordan Corporation:
A 22 percent growth rate in sales is projected. What is the pro forma
addition to retained earnings assuming all costs vary proportionately with
sales?
87.
The Soccer Shoppe has a 9 percent return on assets and a 25 percent
payout ratio. What is its internal growth rate?
88.
The Parodies Corp. has a 22 percent return on equity and a 23 percent
payout ratio. What is its sustainable growth rate?
89.
Consider the following information for Kaleb's Kickboxing:
What is the sustainable rate of growth?
90.
What is the sustainable growth rate assuming the following ratios are
constant?
