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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
EFN The most recent financial statements for 2 Doors Down, Inc., are shown here:
| Â |
Income Statement |
Balance Sheet |
|||
|
Sales |
$3,100 |
Assets |
$4,000 |
Current liabilities |
$ 750 |
|
Costs |
2,600 |
Fixed |
3,000 |
Long-term debt |
1,250 |
|
Taxable income |
$ 500 |
Total |
$7,000 |
Equity |
5,000 |
|
Taxes (34%) |
170 |
 |  |
Total |
$7,000 |
|
Net income |
$ 330 |
 |  |  |  |
Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. 2 Doors Down 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%. What is the external financing needed?
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