Assume Marble Is Projecting a 20% Increase in Sales for the Coming

question 56

Multiple Choice

Assume Marble is projecting a 20% increase in sales for the coming year, with current assets, all costs, and current liabilities proportional to sales. Long-term debt is not proportional to sales. If the
firm's tax rate remains unchanged, the dividend payout is 40%, and Marble is operating at 70% of
Capacity, what is the external financing needed (EFN) for 2015 ($ in millions) ?

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Definitions:

Northwest-Corner Method

A technique used in solving transportation problems in operations research, starting with the top-left (northwest) corner of a matrix to minimize costs.

Source A

An initial or primary provider of information, materials, or resources, often referenced in research or procurement.

Capacity

is the maximum output that a system can produce over a given period under normal conditions.

Demand

The desire and willingness of consumers to purchase goods or services at a given price.