The firm has a 9 percent return on sales and pay 40 percent


PetroChina's gas stations expect average station sales to increase from $1,400,000 to $1,800,000 next year. Mr.Yao, the CEO, believe that net assets will represent 65 percent of sales. The Firm has a 9 percent return on sales and pay 40 percent of profits out as dividends. What effect will this growth have on funds? If the dividend payout is only 15 percent, what effect will this growth have on funds?

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Finance Basics: The firm has a 9 percent return on sales and pay 40 percent
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