Finance Chp 4 Quiz 1

Finance Chp 4 Quiz 1 - 1. For the current year, the income...

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1. For the current year, the income statement of Fake Stone, Inc. reported net sales of $23,600, EBIT of $5,930, taxable income of $5,260 and net income of $3,420. The firm paid $1,368 in dividends. The balance sheet reported current assets of $5,860, net fixed assets of $19,600, current liabilities of $2,470, long-term debt of $8,800, common stock of $10,000 and retained earnings of $4,190. Assume that Fake Stone, Inc. is operating at full capacity. Also assume that assets, costs, and current liabilities vary directly with sales. The dividend payout ratio is constant. What is the external financing needed if sales increase by 12 percent? Answer -$318 -$268 $103 $350 $461 0.1 points Question 2 1. The sustainable growth rate of a firm is best described as the: Answer minimum growth rate achievable assuming a 100 percent retention ratio. minimum growth rate achievable if the firm maintains a constant equity multiplier. maximum growth rate achievable excluding external financing of any kind.
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Finance Chp 4 Quiz 1 - 1. For the current year, the income...

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