Tutorial 09 - NUS Business School FIN2004 Finance Tutorial 9#1 The most recent financial statements for Summer Tyme Inc are shown here Income Statement

Tutorial 09 - NUS Business School FIN2004 Finance Tutorial...

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1 NUS Business School FIN2004 Finance Tutorial 9 #1: The most recent financial statements for Summer Tyme, Inc., are shown here: Income Statement Balance Sheet Sales $4,200 Current assets $3,600 Current liabilities $2,100 Costs 3,300 Fixed assets 7,900 Long-term debt 3,650 Taxable income $900 Equity 5,750 Taxes (34%) 306 Total $11,500 Total $11,500 Net income $594 Assets, costs and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 40% dividend payout ratio. As with every other firm in its industry, next year’s sales are projected to increase by exactly 15%. What is the external financing needed? #2: The most recent financial statements for Live Co. are shown here: Income Statement Balance Sheet Sales $13,250 Current Assets
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  • Spring '11
  • tohmunheng
  • Finance, Balance Sheet, Generally Accepted Accounting Principles, dividend payout ratio, NUS BUSINESS SCHOOL, recent financial statements

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