What percent can sales grow before new fixed assets are


1-Sales of 5,000 units at $30 selling price per unit, EBT is 20% of Revenues, taxes at 35%, Debt-to-Equity Ratio of .40 times, Debt of $25,000, What is the ROE?

A-55.0%

B-31.2%

C-48.0%

2-A firm has an ROA of 10%, a dividend payout ratio of 40%, an Equity Multiplier of 1.60, what is the Sustainable Growth Rate?

A- 9.60%

B- 6.84%

C- 10.62%

D- 9.04%

3-If full capacity sales levels of existing equipment are $2,000,000 and the firm is currently selling 70% of capacity, what percent can sales grow before new Fixed Assets are required?

A- 25.00%

B- 70.00%

C- 42.86%

D- 30.00%

4-Current Assets = $900; Fixed Assets = $2,500; Accounts Payable = $300; Most recent year Sales of $1,500, PM% = 15%, Dividend Payout of 20%. If next year sales are projected to grow to $1,800, what is the External Financing Needed (EFN)?

A- $404.00

B- $360.80

C- $548.00

D- $566.00

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Financial Management: What percent can sales grow before new fixed assets are
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