Pickup Industries Has a Profit Margin of 15% and a Dividend

question 154

Multiple Choice

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. None of the liabilities vary directly with sales, but assets and costs do. If the sales growth rate for Pickup is 20%, how much external financing is needed?

• A) $5.2 million
• B) $13.1 million
• C) $15.2 million
• D) $21.3 million
• E) $26.0 million

---

Definitions:

Low-pitched

Sound that is deep or rich in tone, indicating a frequency at the lower end of the audible spectrum.

Cardiovascular Sounds

The sounds made by the heart and blood within the arteries and veins, often assessed for diagnosing heart conditions.

Trigeminal

Pertaining to the trigeminal nerve, the fifth cranial nerve responsible for sensation in the face and motor functions such as biting and chewing.

Cranial Nerve

One of the twelve nerves that originate in the brain and control sensory and motor functions of the head and neck.