Suppose That the 2009 Actual and 2010 Projected Financial Statements

question 27

Multiple Choice

Suppose that the 2009 actual and 2010 projected financial statements for Camera Corp are initially as shown below. In these tables, sales are projected to rise 40 percent in the coming year, and the components of the income statement and balance sheet that are expected to increase at the same 40 percent rate as sales are indicated with an italics font. Assuming that Camera Corp wants to cover the AFN with 40 percent equity, 30 percent long-term debt, and the remainder from notes payable, what amount of additional funds will they need to raise if debt carries a 7 percent interest rate?

• A) $81,200 equity; $60,900 long-term debt; $60,900 notes payable
• B) $60,900 equity; $81,200 notes payable; $60,900 long-term debt
• C) $203,000 equity; $0 long-term debt; $0 notes payable
• D) none of the answers are correct

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Definitions:

New Products

Items that have been recently developed, introduced to the market, or significantly improved in terms of technology, features, or performance.

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A method for transforming customer needs into engineering characteristics for a product or service.

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The planned and intended outcome of a design process, focusing on achieving specific goals and requirements.

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