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Pickup Industries has a profit margin of 15% and a dividend payout of 40%. Last ...
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Pickup Industries has a profit margin of 15% and a dividend payout of 40%. Last year’s sales were $600 million and total assets were $400 million. Assets and costs are proportional to sales, but debt and equity are not. For simplicity, assume the company has no interest charge obligations. If next year’s sales growth is projected to be 20%, how much external financing (EFN) is needed?
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