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Tim Gillespie Landis Part B

# Tim Gillespie Landis Part B - B Reduces Payout Ratio Assets...

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B. Reduces Payout Ratio Assets to Sales 85.00% Assets * Increase 85% x \$15,000,000.00 = \$12,750,000.00 Change in Sales \$15,000,000.00 Liabilities * Increase 25% x \$15,000,000.00 = \$3,750,000.00 Liabilities to Sales 25.00% Profit Marg * New Sales Total 6% x \$115,000,000.00 = \$4,140,000.00 Profit Margin 6.00% Subtract all 3 New Sales Level \$115,000,000.00 External Fund Requirement \$4,860,000.00 Dividend Payout Ratio 40.00% Grows at Slower Rate Assets to Sales 85.00% Assets * Increase 85% x \$10,000,000.00 = \$8,500,000.00 Change in Sales \$10,000,000.00 Liabilities * Increase 25% x \$10,000,000.00 = \$2,500,000.00 Liabilities to Sales 25.00% Profit Marg * New Sales Total 6% x \$110,000,000.00 = \$3,450,000.00 Profit Margin 6.00% Subtract all 3 New Sales Level \$115,000,000.00 External Fund Requirement \$2,550,000.00 Dividend Payout Ratio 50.00% Profit Margin Reduced Assets to Sales 85.00% Assets * Increase 85% x \$15,000,000.00 = \$12,750,000.00 Change in Sales \$15,000,000.00 Liabilities * Increase 25% x \$15,000,000.00 = \$3,750,000.00 Liabilities to Sales 25.00% Profit Marg * New Sales Total 4% x \$115,000,000.00 =
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